AIP #9 - Locking ⅓ of treasury $CRVs

Governance Proposals Voted Proposals
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AIP #9 - Locking ⅓ of treasury $CRVs

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.

The two transactions can be found here and here.

It is now time to lock those $CRV tokens and begin the journey that leads us to MagicCRV.

3 of treasury $CRVs” (1)
3 of treasury $CRVs” (1)1920×960 75.4 KB

The Current Situation

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.

At the time of writing this proposal, the value of the Abracadabra treasury is $21,176,901.04. Holdings can be seen here and in the community dashboard here.

The total outstanding bad debt is approximately $12.5M.

The current proposal

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.

MagicCRV

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.

The Voting

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.

This Proposal has passed! Abracadabra will lock its CRVs!

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

8 Likes
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Awesome stuff!!! Magic wrapped CRV tokens for the win!!! Kicking butt abracadabra team!!! :open_book::man_mage::woman_mage::mage::magic_wand:

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How close does this 1/3rd locking get this to having the voting power we need to maintain our own liquidity? If not all the CRV is being locked to allow for flexibility, I think paying some percentage of the bad debt down could also give us some flexibility and would be a show of good faith on managing our liabilities.

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Looks like a little over 11%. This dashboard says we got ~31M veCRV votes last round and we’d be locking ~3.5M.

My remaining questions are what the plan would be for the SPELL bribes we take from the weekly emissions and what are plans are for the boosts? Perhaps we’d be voting to boost an mCRV cauldron?

3 Likes
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I like this proposition and i think it responsable and in the same time take a good risk in this following project. It’s sure Spell will benefit of this.
May be can renforce our partnership with curve in the futur.

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Wow​:star_struck::star_struck::star_struck::star_struck::star_struck::star_struck:
I am Indian and I have full faith in you, whatever you do will be right. :rocket::rocket::rocket::rocket::rocket:

2 Likes