CIP-05: CLever Revenue Sharing Program

CLever Improvement Proposals
1

Summary

Modify CLever’s fee distribution to reserve an allocation for whitelisted DAOs that contribute to the overall TVL of the protocol.

Motivation

CLever seeks to capitalize in collaboration with other DAOs to drive further growth for its TVL. Higher TVL means more revenue and income and a better user experience for all CLever depositors and veCLEV holders. It is also critical for CLever to build out composability with the broader DeFi community as it is an important moat for any DeFi protocol.

Proposal

This proposal aims to modify CLever’s revenue distribution into three parts:

  1. veCLEV holders: 33.3%
  2. CLever treasury: 33.3%
  3. Whitelisted Collaborative DAOs: 33.3%

A DAO’s revenue distribution would be determined based upon their total contribution to TVL in a particular asset (like CVX) in the protocol. The revenue sharing will initialize once a whitelisted DAO has surpassed at least 5% of the total TVL of their particular asset of focus. Once they have achieved greater than 5% of TVL, their revenue share distribution from the apportioned 33.3% will be distributed proportionate to the amount of TVL they contribute.

At the end of each epoch, CLever will pay any whitelisted DAO that participates based on their contributing TVL to the protocol. Any apportioned revenue remaining from the 33.3% reserve for collaborative DAOs will be donated to veCLEV holders and CLever treasury on a 50:50 basis.

Here is an example of how the revenue distribution could be realized:

  • CVX deposits have $10m TVL of which $2m (20%) is from various whitelisted DAOs
  • The vlCVX earns $250k per month in revenue
  • CLever will run a checkpoint each epoch and distribute the revenue generated as follows: $83.3k to veCLEV holders, $83.3k to CLever treasury and $83.3k to the collaborative DAOs’ reserve account. Because the participating DAOs’ TVL contribution is noted as 20%, CLever will pay out 6.6% (33.3% x 20%) of $83.3k to the collaborative DAOs proportionately and donate the rest to veCLEV holders and CLever treasury on a 50:50 basis.

Polling Period
The polling process begins now and will end at 18:00 UTC on 09/04/2024. A Snapshot Vote will be put up by 18:00 UTC on 10/04/2024.

Poll

  • For: Modify CLever’s revenue fee distribution to reserve an allocation for whitelisted DAOs that contribute to the overall TVL of the protocol.
  • Against: Do Nothing
0 voters

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