Conic Finance – CNC

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Conic Finance – CNC

7 minutes
Contract adress: 0x9ae380f0272e2162340a5bb646c354271c0f5cfc

Are you looking for a way to maximize your returns on deposited assets in the Curve ecosystem? Look no further than Conic Finance, the DeFi protocol that allows you to diversify your liquidity providing exposure across multiple Curve pools with a single token deposit. Say goodbye to the tedious task of searching for pools with optimal APR and CRV emissions and lack of control over liquidity allocation. Conic solves these issues by providing a liquidity pool that deploys your assets across multiple pools, all controlled by community-driven governance.

What is Conic Finance – CNC?

Conic Finance is the final lego on top of Curve – CRV and Convex – CVX. The platform lets you diversify your Liquidity Providing – LP exposure across multiple Curve Pools using a single-token deposit.  Now any user can provide liquidity into a Conic Omnipool which allocates funds across Curve in proportion to protocol controlled pool weights. Lowering the barrier to enter the Curve ecosystem.

What problem is it trying to solve?

Conic is trying to solve several problems in the Curve ecosystem:

  • Difficulty in searching for pools with optimal APR and CRV emissions: With multiple pools on Curve, it can be difficult and time-consuming for users to find pools with the highest returns on their deposited assets.
  • Lack of control over liquidity allocation: In the current system, liquidity is primarily provided through incentivized pools, leaving little control for users over where their assets are allocated.
  • Inefficiency in managing multiple pools: Depositing assets into multiple pools can become costly and inefficient, as users may need to frequently rebalance their allocations in response to changing inflation weights.

 

Conic aims to address these issues by providing a liquidity pool that allows users to deposit a single asset into a Conic Omnipool, which then deploys the liquidity across multiple Curve pools.

 

Cone Father

This review of Conic Finance – CNC was created for informational purposes. This article is not intended for promotion.

General info about Conic Finance – CNC

How does it work? 

How does Conic Finance work? First, users deposit a single asset into the Omnipool. Conic Finance automatically distributes ETH across multiple supported pools with the most efficient strategy provided by vote-locked Conic – vlCNC governance.

Liquidity Providers

  • Can deposit a single token (e.g. DAI or USDC) into a Conic Finance pool–>
  • Conic Finance deposits the token into a combination of approved Curve pools and stakes the Curve pool LP tokens on Convex–>
  • LPs receive Conic Finance LP tokens (e.g. cncDAI, cncUSDC)–>
  • LPs receive CRV, CVX and CNC tokens–>
  • Extra reward tokens (e.g. SPELL, LDO, FXS) are periodically sold off for a pool’s underlying token and auto-compounded
  • LPs can withdraw their funds at any time with no fees

 

CNC Holders

  • Can lock their CNC tokens for vlCNC–>
  • vlCNC holders can take part in a biweekly liquidity vote, whereby the weights that determine how much liquidity of an asset a particular Curve pool receives–>
  • vlCNC holders can vote on whitelisting and blacklisting Curve pools that can be used to receive liquidity.–>
  • vlCNC holders vote on which assets gets added to the platform–>
  • If decided by vlCNC holders, platform fees could potentially be introduced and paid out to vlCNC holders

 

LP Token Pricing

Users of Conic Omnipools will indirectly engage in single-sided liquidity provision to several Curve pools. Many of these Curve pools, rely on a custom invariant to determine the price of an asset in the pool and to obtain a value for the pool’s LP tokens.

While the stableswap logic ensures comparatively stable prices, users can still imbalance a Curve pool (for instance using a flashloans) to influence the prices in that pool. This gives rise to a number of attacks that must be prevented. To prevent this sort of attacks from happening, Conic requires a manipulation resistant LP token pricing mechanism that relies on the invariant of the Curve pool and price oracles. Check out the complicated concept in the official Conic Whitepaper here.

 

Use case of Conic Finance – CNC

Conic DAO

Conic Finance uses a decentralized autonomous organization (DAO) model, where holders of vlCNC, a locked version of CNC token, can participate in the governance of the protocol. These holders can vote on proposals via Snapshot, a blockchain-based voting platform, and have the power to make decisions that affect the protocol. One of the key votes that vlCNC holders participate in is the bi-weekly liquidity allocation vote (LAV), during which the liquidity allocation weights of each Omnipool are updated. This allows the community to determine which Curve pools should receive more liquidity. Additionally, vlCNC holders may receive a share of the platform fees generated by Conic, if the platform fee feature is enabled through governance vote.

What is vlCNC?

vlCNC (Voted Locked CNC) is a locked version of the Conic Finance DAO token, CNC. It is used to determine the voting power of a holder in the Conic DAO and their share of platform fees generated by the protocol.

Holders of CNC can “lock” their tokens by depositing them into the Conic staking contract, which earns them vlCNC tokens in return. The amount of vlCNC tokens a CNC holder receives is determined by a set of standard boosts and temporary boosts that are applied to the CNC lock. These boosts are multiplicative and are used to calculate the total boost for a single lock. The vlCNC balance then determines how much voting power and fees a vlCNC holder receives. It should be noted that not all boost factors apply to the vlCNC balance that is used for fee distribution.

How does Conic generate value? 

ConicFinance creates another token with veTokenomics with even more rewards. If stakers vote for fees in the future, there will be a revenue model for vlCNC holders. The community will gain by the growing of the ecosystem. 

Governance

Conic governance can be broken into two separate categories: 1) Omnipool liquidity allocations and 2) Conic improvement proposals – CIP. 

The parameters on the governing model for Omnipool liquidity allocations are;

  • CNC holders can directly control liquidity on Curve through Omnipool liquidity allocations. Which are subject to a bi-weekly vote that determines liquidity allocation.
  • Voting will take place every other Thursday (snapshot).
  • Emergency multi-sig signers can always veto proposed allocations.

Tokenomics

Total Supply: 10M

  • 30% Community raise
  • 10% Airdropped to vlCVX holders
  • 44% Liquidity Providers receive a share of CNC that is minted proportional to the share of liquidity that they supply
  • 6% Treasury (5% 1Y Linear Vesting and 1% unvested at launch for AMM pool)
  • 10% AMM Stakers (Distributed to stakers in CNC/ETH in Curve)

 

Conic Finance has no deposit or withdrawal fees yet. There are also no performance fees charged on CRV and CVX tokens.

How to earn Conic – CNC?

This can be done by staking your CNC/ETH Curve LP Tokens. A Curve factory pool for CNC/ETH has launched and can be used for the pool’s LP token to be staked on Conic to receive CNC rewards.

More ways to earn CNC are coming. A Curve LP Token swap rebalance and Liquidity providing for Curve LP supply will be launched in the future.

Conic Finance Airdrop

Conic Finance airdropped 10% of CNC supply to Convex – CVX holders. To be eligible for the Conic Finance airdrop users had to have  at least 3 vlCVX to receive a minimum of around $1000. The amount received per user is proportional to their share to the total amount of vlCVX locked.

How to receive Conic Finance Airdrop?

  1. Go to conic.finance
  2. Go to “terminal”
  3. Type “help”
  4. Type “connect”
  5. Type “airdrop”

 

Where to buy and sell Conic Finance – CNC?

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What do we think about Conic Finance – CNC?

Conic Finance – CNC conclusion

Conic Finance is a community-led project and has not been officially audited. Its model is built on top of a very well known ecosystem that has survived the test of time namely CurveFinance and ConvexFinance.It is still a low market cap with a market cap of 25 million and would go up in a bull market with many multiples. For now we see only a few… :’(

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