While some may not want to be sidelined in stables given the current market conditions, the stablecoin space is interesting again, to some. Whether farming points, shards, or just basis APR, there’s opportunity to take advantage of elevated stablecoin rates. One protocol housing such opportunities is Conic Finance; Conic first launched around 1 year ago, providing Omnipools, single-sided liquidity deposit pools built on top of Curve.
Conic Finance recently launched their V2, and is looking to make a recovery following a catastrophic exploit early on into the protocol’s lifespan. The project has been taking actions to try and gain back some momentum, including adding omnipools for FRAX, PYUSD, and USDT, and potentially f(x) Protocol’s own fxUSD.
Stay vigilant in the markets ⬇️
Background on Conic
Conic enables single-sided liquidity deposits in Omnipools built on top of Curve. This allows LPs to capture optimal yield opportunities across multiple pools holding the same underlying asset.
The $crvUSD omnipool offers an attractive current APR of approximately ~39%; this figure is a 75% increase from the initial ~17% on launch. This consists of a base APR from swap fees and additional emissions in $CRV, $CVX, and $CNC. The demand for $crvUSD generated by Conic leads to new minting of the token. It also drives buying activity, resulting in a higher base APR on the stabilizer pools against $USDC, which yields 1% daily.
Conic experienced an exploit that at first surfaced around the project’s $ETH omnipool. Soon another issue was also found involving the $crvUSD pool, provoking the team to shut down deposits for all omnipools. The team acted promptly and recently implemented Conic V2, aiming to regain the TVL that once was. This comes after raising $1M from Curve Finance Founder Michael Egorov himself…
Exploits aside, Conic provides an interesting new primitive around Curve pools. The project was born as a platform that would help liquidity providers in the Curve ecosystem diversify their exposure to multiple Curve pools. This allows them to take an active role in optimally balancing liquidity across Curve pools.
CNC Locking Mechanism
Holders can lock their $CNC tokens for $vlCNC to participate in governance and directly control how liquidity is allocated across Curve pools. Through this approach, Conic LPs can quickly respond to changes in market conditions. This is in addition to the incentives system for rebalancing the Omnipool.
One of the strengths of Conic’s locking mechanism is that the $vlCNC balance a user acquires is derived from a set of multiplier boosts that are applied to the amount of $CNC that they lock. This can seem complex, so we will break down the design.
At its core, the design behind the locking system seeks to align the interests of liquidity providers and lockers.
Users can lock $CNC for a fixed period of anywhere between 4 and 8 months. This can result in a boost factor from 1 to 1.5.
If a user locks for 4 months they will receive no lock time boost (boost factor of 1)
If a user locks for the full 8 months they can apply a boost factor of 1.5 to their vlCNC balance.
$CNC lockers can significantly boost their $vlCNC balance by providing liquidity in a Conic Omnipool. This would also increase their voting power.
The larger the share of pool TVL an LP has, the greater the boost factor.
The longer the period of time LP tokens are staked for, the greater the boost factor.
If you’re finding this information useful, you can access our full Conic Finance Industry Intel for FREE.
Our full report goes over the intricacies of Conic, the potential of Omnipools and protocols building on top of Curve, & more…
Click below to get started:
Important Links
Become a Premium member to unlock all our research & reports including access to our members-only discord server
Join thousands of sharp crypto investors & traders by becoming a Premium Member & gain an edge in the markets. For just $116.58/month you’ll get:
Premium access to the entire Revelo Intel platform
Market Intel - actionable investment reports
Industry Intel - highlighting important narratives/ trends
Sector Overviews - 90-day Reports with data and insights on key sectors
Launch Alpha - Weekly report highlighting new projects
Airdrop Guides - Reports on airdrop opportunities
Members Only Discord server
Project Snapshots - Monthly protocol-specific performance reports
Project Breakdowns & Timelines - Deep dive 50+ page protocol-specific reports
Notes - Summaries of your favorite podcasts & AMAs