Gauge Emissions
How pools can receive compelling interest rates on Curvance
As briefly described in the Token Distribution section, something called "Gauge Emissions" was mentioned. These "Gauge Emissions" will allow approved pools on Curvance the ability to receive continuously streamed CVE rewards.
Similar to how Curve's reward gauge works, the DAO will vote biweekly on the total boosted reward allocation and which pools receive the boost for that particular period. This presents an opportunity 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 Aura wanted to incentivize boosted rewards for their auraBAL pool. Aura could acquire veCVE tokens and vote to boost the auraBAL pool with streamed CVE rewards. This vote could increase the auraBAL APR significantly for that reward period attracting new investors to deposit to that particular pool.
Similarly, the lending market has its own gauge that veCVE holders can vote on. Since Curvance is creating a lending marketplace and not issuing its own stablecoin, we will depend on various liquidity depositors to make up available lending liquidity.
These depositors could be individuals or DAOs providing liquidity and earning rewards. Since multiple stablecoin pools will exist and a set amount of CVE rewards will be issued every two weeks, the gauge can be set up accordingly.
For example, if there are currently three stablecoin pools available; FRAX, DOLA, and LUSD. Then the CVE rewards for those two weeks 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.
With the described setup 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 proportionally to veCVE voters.
Last modified 2mo ago