Governance Update #8
AIP-53 has passed and AIP-54 is up for discussion!
AIP-53 Move D3 Pool Token Emissions to alUSD3CRV
Community member Contrepreneur proposed AIP-53 because Alchemix is the only protocol allocating bribes to the D3 pool, after Frax and Fei both ceased bribes. Alchemix is currently allocating 2% of token emissions to the D3 pool. Separately, FRAX is in the process of getting a Curve factory gauge for the new alUSD/FRAXBasePool metapool. This pool has many potential benefits to Alchemix and could receive a larger allocation in the future but, for now, the intent is to maintain the amount of incentivized alUSD liquidity paired with FRAX. This proposal would shift the 2% allocation from the D3 to the alUSD/FRAXBP pool instead.
AIP-54 AMO and Transmuter Operating Framework
Status: AIP-54 is up for discussion, with a snapshot vote coming next week.
AIP-54 identifies some vague parameters and inefficiencies in the current operations of the Transmuters and Elixirs. This proposal also offers a few new operating parameters that will bring more predictability to LP mechanisms. The contracts that assist in providing liquidity and rebalancing of the Curve pools (Elixirs) are very effective at rebalancing and earning revenue. However, in absence of the Transmuter, the Elixirs remove the ability for LPers to earn 1:1 redemption of alAssets for base collateral over a period of time. While the Transmuter offers redemption rate predictability to LPers, it also opens the door for small arbitrages at the cost of significant TVL. This proposal seeks to reintroduce the Transmuter in a limited capacity after changes are made to some operating parameters. The primary changes would decrease Transmuter flow rates in the DAI and WETH Transmuters, as well as redirect yield harvests from the Elixirs to the TransmuterBuffer. More defined AMO operating parameters are also proposed in AIP-54, which may provide additional strategies for LPers. Several longer-term modifications are discussed as well, so be sure to check them out in the proposal!
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