The Omnichain Gauge
Curvance has developed a novel design for a unified vote escrow system, the Omnichain Gauge.
Leveraging LayerZero's cross-messaging and Stargate Finance we were able to create a communication layer between Ethereum and an unlimited number of "child" chains. This allows a user to lock CVE as veCVE on any chain and vote for any pool on any chain.
In addition to this, rather than isolated instances of reward systems, all protocol fees are shared equally across all chains. This unlocks a unique system where users can lock tokens on rollups and benefit from fees generated on Ethereum Mainnet, significantly saving their gas costs while maintaining the deep liquidity and fee generation present on Ethereum Mainnet. This also allows protocols to utilize their tokens and expand their liquidity across any supported network.
For example, Protocol XYZ has a large amount of liquidity on Ethereum and would like to improve its liquidity on Arbitrum; it could then use the Omnichain gauge system to vote for its token pair on Arbitrum with tokens they have locked on Ethereum, greatly incentivizing users to create and deposit liquidity on Arbitrum without them having to move any assets themselves.
The voting system works by tapping into Snapshot's gasless voting system, tabulating a user's votes across all chains. Upon the conclusion of a voting epoch, votes are moved on-chain and inputted into a matching engine on Ethereum that determines what portion of emissions should go to each chain and bridges them through our cross-messaging system to each child gauge system which distributes emissions to each pool for the upcoming epoch. Below you can see the communication system for the omnichain gauge.
CVE Gauge Emissions Layer
Much like the voting and gauge system itself, the CVE locker system is omnichain, with Ethereum acting as the canonical chain. Every epoch, each child chain reports back its veCVE-locked token state to Ethereum, along with passing over all fees accumulated for the period. This allows the Ethereum gauge to tabulate WETH and CVE rewards for the epoch per veCVE locked. All rewards are then distributed similarly to the gauge emissions. Rewards from Ethereum become immediately available, and cross messages are sent to each cross-chain with the appropriate ETH and CVE rewards for each child chain. Below you can see the visualized communication system:
CVE Tokens and Lending Market Communication Layer
With this system, Curvance can scale to (nearly) unlimited chains with minimum maintenance and state bloat. In addition to this, Curvance can benefit from high-gas environments such as Ethereum without users needing to pay those same gas fees (by locking tokens on cheaper chains). The system is also highly modular, allowing for other chains to be socketed on or removed as necessary. This allows Curvance to be nimble in adopting new assets and networks as needed.
Like the Omnichain Gauge and token lockers, CVE itself is also omnichain allowing users to move their tokens from chain to chain as they see fit without any liquidity pool necessary. This reduces slippage, increases maximum capital efficiency, and creates significantly faster validation time than typical bridge setups.