AIP #9.1 - Locking ⅓ of treasury $CRVs as yveCRV

RFC 9.1 - Locking ⅓ of treasury $CRVs as yveCRV

Last month, our community decided to lock ⅓ of treasury $CRVs through AIP #9. The goal of this proposal was to initiate MagicCRV and start pushing our voting wrapper on the market to increase voting towards our pool.

The Yearn team noticed our vote and reached out to us with an interesting concept. We discussed in length, a new innovative CRV product that Yearn is working on.

During our discussions we came to the conclusion that Yearn is building new mechanisms for a CRV wrapper which aligned with the original idea of magicCRV.

While Yearn reached out to collect comments and potential improvements, we started thinking about a potential future where Abracadabra and Yearn join forces to provide a new liquid CRV wrapper.

Working together on one single CRV voting wrapper has several benefits for Abracadabra. For one, we would not need to spend valuable voting power to obtain liquidity for our wrapper, and therefore can direct all our voting power towards growing our liquidity on the MIM-3pool; while Yearn would be responsible for attracting liquidity on the wrapper.

Yearn’s new product disaggregates veCRV incentives into discrete tokens, allowing users to enter into whichever positions is best for them: yield or vote power:

  • Liquid voting power: receive full voting power worth 1 veCRV while retaining the flexibility to exit the 4-year lock commitment through yCRV-CRV liquidity.
  • CRV Yield: a system to collect and auto-compound admin fees + bribe revenue which has the potential to outperform existing products.
  • yCRV LPing: LP position which auto-invests CRV yield to grow the LP. Yearn will incentivize this pool through large voting power allocations creating liquidity for the voting wrapper.

Let’s now dive into some of the pros of this possible collaboration:

Firstly, if the community chooses to join forces with Yearn on the voting wrapper, Abracadabra could save significant voting power due to Yearns yCRV LPing strategy. If we had to use magicCRV, we would solely need to work on the mCRV <> CRV peg, redirecting our own voting power or emissions from our MIM3pool towards our wrapper. Decreasing MIM’s liquidity in exchange for a possible future of creating a new liquid wrapper.

On the other hand, Yearn will allocate significant portions of their veCRV to grow liquidity for the wrapper, allowing users to exit their individual position swiftly, and allowing the Abracadabra treasury to have a liquid wrapper without further costs.
Additionally, we agreed that should the need for an exit of our large CRV position ever arise, Yearn will deploy several mechanisms to further increase liquidity (on-demand).

Secondly, Yearn would amend our wrapped CRV position in a way, to allow us the collection of our own SPELL bribes which can be returned to our treasury or reused for new bribes in the future. It is an operational efficient way to control additional liquidity through SPELL incentives, should the need ever arise.

We have discussed Yearns CRV bribing system, and they have agreed to double their current vote weight for the MIM gauge (additional 5.2M veCRV) to collect bribes from us as long as the pay remains competitive.

Overall the Abracadabra team believes that creating deep liquidity for magicCRV to obtain similar results as Yearn, will be a costly endeavor. Costs that could be directed to the deepening of MIM-3Pool liquidity.
A collaborative effort towards Yearns new CRV product, will attract additional 5.2M veCRV from Yearn, to our pools, as well as allowing us to remain flexible through a liquid yCRV/CRV pool and further strengthen this symbiotic partnership between Abracadabra and Yearn.

Since our inception, Abracadabra and Yearn have always been working closely together to improve the DeFi space as a whole, and we believe that this joint effort will keep doing that.

Yearn’s new CRV model would attract liquidity towards their wrapper, significantly cutting our cost for our wrapper and amplifying our voting power towards the MIM-3Pool.

As a gesture of goodwill, Yearn has already declared to add 5.2M veCRV votes towards our MIM gauge for this week, signifying cooperation and a prosperous future together.

We would like to invite the community to consider this opportunity to join forces. While the new CRV product is not yet launched, we would be able to lock our CRV to yveCRV, receive 1:1 voting power from veCRV:yveCRV and automatically be migrated to the new version upon launch.

The Voting

This proposal is now up for voting! Voting will end in 3 days, on monday! You can find the Snapshot here.

Let us know what you think on Discord as well as here below this post!


Sounds like a good option. One question though, how is this option better than Stake DAO’s liquid locker?


Hey, interesting proposal.
Instead of getting three discrete tokens, why not just getting sdCRV (which is just a liquid version of veCRV) and use it to farm 3CRV, CRV and SDT (>30% APY) + max vote for the MIM pool every other week?


Replied in Discord but posting here as well. Love the idea overall, I think it’s a great product for Abra as :

  • The treasury doesn’t care about the yield
  • The users doesn’t care the votes

It sounds like a system that maximises both cases.

As for sdCRV, I’m less tempted to go with them instead of Yearn as :

  • Yearn is offering 5.2m additional veCRV votes to the MIM pool
  • sdCRV liquidity isn’t good enough ( 3m on Curve ), Yearn will come up with a new product so yveCRV is to be forgotten
  • To unlock the full potential of sdCRV you need to lock SDT as well, which implies more management and more SC risks
  • Abra has been working with Yearn almost since the beginning so makes sense to keep with them ( yvToken cauldrons, fees sharing, Spirit leverage tapping into yvMIM etc )

Overall in favor of the proposal :mage:


ok, I guess the 5.2m veCRV free votes is a big point in favor of yearn for sure. Will abracadabra need to pay for them? Is there a commitment on how long we will get those votes?

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Not aware of those infos, will ask Romy :ok_hand:

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This seems like it has a strong synergy with what we’re suggesting in our proposal. Very exciting stuff

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I would LOVE to see a synergy between the three products where CRV is sent to Yearn instead of dumped on the market on the compounding strategy of your side :pray:


Btw, investigated and learned that Stargate also got the same deal. How will you ensure those 5.2m will be used to vote for the MIM pool and not stg/usdc gauge?

This deal would really benefit from being written and ideally decentralised/on chain…

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Full support. This has many advantages

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