The @SEEDgov team has thoroughly reviewed and evaluated this proposal, and we’re voting FOR this proposal. We appreciate the work @Jadmat did on this analysis.
We’d like to highlight that CurveLens introduces significant innovations in its liquidation and efficiency mechanisms, particularly in the integration of crvUSD, the stablecoin that can be borrowed against any of the listed assets. @michwill has incentivized this protocol on Arbitrum with personal capital, not DAO funds, and has made similar efforts for crvUSD across various Layer 2s and other prominent EVM chains to increase liquidity for this new product.
For more details on how it works, you can visit: https://cryptorisks.substack.com/p/a-primer-on-curve-lending
However, we must be cautious regarding incidents like the one on 04/13; CRV wasn’t arbitrable for several hours, which led to the liquidation of some positions using this asset as collateral. This incident was related to the low liquidity of CRV on Arbitrum and a shortage of arbitrage operators. While these issues were not severe, the inclusion of CRV did expose some risks.
We believe the proposal is solid, coherent, and well-founded. It proposes using ARB as a direct incentive, and it would be interesting to delve deeper into the rationale for this strategy, rather than directly incentivizing the stakers. We estimate that this point has already been considered and that the decision was made in pursuit of maximum efficiency.
We vote in favor. CurveLens’ choice of Arbitrum as its first chain following Ethereum is key to the Curve ecosystem, as it brings significant capital efficiency to users, as well as opening up many possibilities for innovation in the creation of Perps and high-leverage operations. CrvUSD has performed impeccably since its deployment. Curve, already established as an essential on-chain infrastructure, is expanding its ecosystem and introducing innovations across various sectors; its integration into Arbitrum represents a win-win that also benefits the users.