Silo

What are you voting on? You are voting to allocate roughly 130,000 vlCVX (50% of the DAO’s vlCVX holdings) to incentivize our 50:50 SILO:ETH pool on Balancer. We will use the allocated vlCVX amount to bribe veBAL holders to vote on SILO:ETH BAL emissions.

The proposal doesn’t affect incentives emitted to the SILO:FRAX pool on Curve.

If the vote passes, SiloDAO will have two incentivized liquidity pools:

1- SILO:ETH (50/50 Balancer) - incentivized with ~130K vlCVX worth of bribes 2- SILO:FRAX (Curve) - incentivized with ~130K vlCVX

We recommend that the community review the performance of both pools and allocate larger incentives to the pool that facilitates larger trading volumes.

Problem There are several shortcomings of the SILO:FRAX Curve pool:

• Pairing with a stablecoin exposes LPs to more impermanent loss than that with ETH.
• Crypto websites such as CoinMarketCap and CoinGecko don’t read token prices off of Curve factory pools.
• Majority of DEX aggregators don’t route transactions through Curve factory pools.

Solution SiloDAO can incentivize the SILO:ETH pool on Balancer V2:

• Silo:ETH pool already exists on Balancer.
• Balancer pools are well integrated with CMC/CG as well as DEX aggregators.
• Tokemak will integrate with Balancer soon. This means when we ignite our $SILO reactor, it is possible to direct SILO:ETH liquidity to our Balancer pool - the decision is ultimately made by $TOKE holders.
• The Silo lending protocol already integrates Balancer v2 oracle which makes a Silo money market for $SILO a possibility.