Dear wizards, as most of you already know, Abracadabra treasury made a well-timed investment into $CRV tokens a few months ago, acquiring 4,596,347.34 CRV for an average price of $0.6962.
It is now time to lock those $CRV tokens and begin the journey that leads us to MagicCRV.
Currently Abracadabra treasury holds 10,380,153 CRV tokens, worth more than $14M USD. Additionally, our treasury holds 5,843,907 MIM, 541,029 USDT and approximately another 600K in other (non-$SPELL) assets.
The total outstanding bad debt is approximately $12.5M.
This RFC proposes to lock 3.3M $CRV tokens (33% of total $CRV holdings) from the treasury for 4 years. Instead of relying on $SPELL bribes to attract liquidity, Abracadabra will be able to use its newfound voting power to directly vote on gauges.
Following this locking, the veCRV voting power will be redirected towards the Abracadabra pools on Curve. The net effect of this will be to increase $CRV rewards for LPers, deepen MIM liquidity, and shrink overall $SPELL emissions.
By keeping the remaining 66% of $CRV as liquid assets, Abracadabra retains its flexibility to react to sudden market volatility. In the future, new proposals will be made to lock the remaining $CRV tokens.
This initial locking is the first step towards the launch of MagicCRV, our $CRV voting wrapper that will be used to further increase voting towards our pools. If you want to read more about MagicCRV, you can find the proposal here.
We feel confident that locking the treasury $CRV and introducing MagicCRV will mark a new era for $MIM liquidity on chain.
Voting for AIP #9 will start 15:30 CET on the 18th of August, and finish 15:30 CET on the 21st of August.
Vote “Yes”, if you want the DAO to lock the CRVs, or “No” if you do not want to.
Let us know what you think on Discord as well as here below this post!