This proposal is to change the underlying asset of aFXS Concentrator Compounder from cvxFXS-FXS LP to single cvxFXS staking.
Presently, the aFXS Concentrator Compounder utilizes cvxFXS-FXS LP as the underlying asset. Users can deposit their LP and earn aFXS - an autocompound token for FXS.
Convex is planning on migrating cvxFXS-FXS to a new LP soon. Instead of migrating aFXS compounder to the new LP, we propose to switch to cvxFXS single staking.
The main advantages of this would be:
- Higher APY: As of now (29.06.2023), the LP APY is 6.51% while cvxFXS APY is 10.55%;
- Simplified staking process: Single cvxFXS staking simplifies the staking process for users. They will no longer need to provide liquidity to the cvxFXS-FXS LP, reducing the steps required to stake and earn aFXS rewards. This streamlined approach will make it more accessible for a wider range of users. Same with withdrawing from the compounder.
- Lower gas fees: Shifting to single cvxFXS staking will also lead to reduced gas fees for transactions. Users will no longer need to execute transactions involving LPs, which typically involve multiple token swaps and transactions. This reduction in gas fees makes the staking process more cost-effective and efficient.
We propose to change the underlying asset of aFXS Concentrator Compounder from cvxFXS-FXS LP to single cvxFXS staking. This change will offer several advantages, including higher APY, simplified staking process and reduced gas fees for transactions.
The polling process begins now and will end at 12:00 UTC on 06/07/2023. If Quorum is reached, a Snapshot Vote will be put up at on 07/07/2023.
- For Transition from cvxFXS-FXS to cvxFXS single staking for aFXS Compounder
- Against Do nothing