Proposal: Add support for CRV (Curve DAO Token)

Governance
1

Summary:
Proposal by the Curve team

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.

10 Likes
2

Just adding a few more links here as it won’t let me have more than five links:

Curve audits: https://www.curve.fi/audits
Curve DAO Docs: https://github.com/curvefi/curve-dao-contracts
Github: https://github.com/curvefi/curve-contract
Smart Contracts: https://www.curve.fi/contracts
Dune Dashboard: https://www.duneanalytics.com/projects/curvefi

Happy to answer any questions regarding CRV below.

5 Likes
3

Good idea. Curve is a high quality project.
Yes, please.

5 Likes
4

Just wanted to revisit this. Curve is such an important part of DeFi; surely creating a market for CRV on AAVE would be useful. Has there been any more discussion around this since Charlie’s proposal?

1 Like
5

CRV is one of these DeFi assets with clear fundamentals and improving liquidity. Furthermore, there are derivative products on centralised exchanges which helps liquidator to hedge in the event of liquidations, thereby increasing safety. Starting with a conservative LTV of 33-40% until liquidity improves would make sense here.

Note: this asset has seen strong borrowing on Cream with high interest rates which would probably move to AAVE!

6 Likes