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.
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.
Conic is trying to solve several problems in the Curve ecosystem:
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.
This review of Conic Finance – CNC was created for informational purposes. This article is not intended for promotion.
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.
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.
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.
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.
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.
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;
Total Supply: 10M
Circulating Supply: 3,808,811
Total Supply: 5,600,000
Max Supply : 10,000,000
43% of circulating supply is currently locked.
The allocation offers growth potential with reasonably distributed profits for investors and community.
Conic Finance has no deposit or withdrawal fees yet. There are also no performance fees charged on CRV and CVX tokens.
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.
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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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