How some pools will receive above average APRs on Curvance
As briefly touched on in the Token Distribution section, alongside Bonding, something called "Boosted Rewards" was mentioned. These "Boosted Rewards" will allow certain pools on Curvance the ability to be boosted.
Similar to how Curve's reward gauge works, the DAO will vote monthly on the total boosted reward allocation and which pools receive the boost for that particular month. This gauge could be huge for protocols that want to attract new TVL for their pools using Curvance as a means to incentivize users "rent-free."
For example, let's say Badger wanted to incentivize boosted rewards for their bveCVX pool. Badger could acquire vlCVE tokens and vote to boost the bveCVX pool with CVE rewards. This vote could increase the bveCVX APR significantly for that reward period attracting new investors to deposit to that particular pool.
Similarly, the lending market has its own gauge that vlCVE holders can vote on. Since Curvance is creating a lending marketplace and not issuing its own stablecoin (at least not yet), we will depend on various liquidity depositors to make up our lending market.
These depositors could be individuals or DAOs like Frax Finance, providing liquidity and earning rewards. Since there will be multiple stablecoin pools and a set amount of CVE rewards to issue every two months, the gauge can be set up accordingly.
For example, if there are currently three stablecoin pools available; Frax, Dola, and Fei. Then the CVE rewards for those two months would have to be allocated between those three pools. The distribution would be voted on with veCVE, so it would make sense for the various DAOs and individuals to vote for their preferred pool to give themselves the most rewards.
This is just another example of the use-cases of veCVE and why it could be a sought-after governance token for individual investors and other DAOs.
With the described set up for boosting Lending Markets, there will be the opportunity for bribes to be put up to incentivize allocating votes to specific pools or markets. Bribe revenue would be passed on to both veCVE voters & cveCVE holders, proportionally.
Details to come...