Listing Proposal: Add CRV (Curve DAO Token)

Summary :
Proposal by the Curve team

Following the initial proposal here , we’d like to submit CRV for polling below.

Curve is an exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading. It is the second biggest DEX on Ethereum and the third biggest protocol by TVL.

The newly launched CRV token is a governance token which also allows liquidity providers to boost their rewards on the platform as well as receive a share of trading fees on the Curve platform. Curve has recently reached over $10B in cumulative volume.
Users who vote lock their tokens (CRV => veCRV) receive a share of trading fees on the platform as well as a boost on their provided liquidity.

Useful Links :
Official: https://www.curve.fi/
Curve DAO: https://dao.curve.fi/
Governance forum: https://gov.curve.fi/
Help and FAQ: https://resources.curve.fi/

DAO Audits :
Trail of bits / Quantstamp / Mixbytes: https://dao.curve.fi/audits

Benefits for Aave:
Borrow demand for CRV has been strong on other protocols where CRV lending APYs have been consistently above 50% with near 100% utilisation.

Risk Mitigation:
Curve DAO has been audited three times and is a fully decentralised Aragon DAO. Liquidity and trading volumes have been strong since launch. It currently has close to 12,000 holders as well as around 2600 governance participants. Looking at AAVE Risk Framework evaluation, I expect CRV to find itself around a B rating.

Thanks for your consideration.

  • For
  • Against

0 voters

15 Likes

Seems like a no-brainer to me to list CRV. Curve is one of the biggest projects in this space and there is a good amount of demand for CRV as it can be locked in Curve to increase yields. And of course Aave is one of the most trusted lending protocols in this space.

4 Likes

Hi @charlie_eth

Here is an analysis based on Aave’s Asset Risk Framework to quantify CRV’s risks and the resulting model parameters suggestions

CRV’s Overall Risk is B-

The table below shows the key metrics used for the analysis as well as the risk scores using data from CoinGecko as of 15/12/2020

CRV is the governance token of the Curve DAO behind the Curve Stablecoin Exchange the third biggest DEX on Ethereum with $1B of TVL. Curve offers an optimised model for stablecoin trading and revenue sharing incentives with fees from the >$10B in cumulative trading volume

CRV Smart Contract Risk: B-

CRV token was introduced to Curve in August 2020 through liquidity mining. The code has 3 audits from ToB, Quantstamp and MixBytes. It is central in the DAO operations enabling stakers to vote and boost their yields with the locking of CRV. This model has generated half a billion transactions in half a year, with around 15,000 holders

CRV Counterparty Risk: B

The Curve DAO operates as a fully decentralised organisation with community proposals and votes. The ecosystem is funded by fees of the Curve Exchange generated by the $40m of daily volume

CRV Market Risk: C

Curve is one of the leading DeFi projects. The token is available on top exchanges with nearly $100m market capitalisation and nearly as much average daily volume though a large share of CRV’s supply is locked. CRV experienced volatility in the last month with the rest of the market having yet to recover

CRV’s risk profile is close to YFI’s leading to the same model parameters

Risk Parameters

LTV 40%

Liquidation Threshold 55%

Liquidation Bonus 15%

Reserve Factor 20%

Variable Interest Rate Model


CRV fits the profile of a collateral asset, with the need for a conservative borrow rate model with a low optimal utilisation to protect collateral liquidity

UOptimal 45%

R_0 0%

R_s1 7%

R_s2 300%

10 Likes

The proposal passed and is queued for execution for tomorrow (27th December) 9.45 pm UTC. Congrats for Curve and Aave community for initiating a successful, and first Aave v2 governance proposal.

6 Likes