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Convex Curve Pool Plugins

Convex Curve Fiat Collateral

Contract source code: UniconvexFiatCollateral

{tok} Convex LP token
{ref} Synthetic reference CURVED<A0>...<AN> where N is the number of assets in a Curve pool, like CURVEDDAIUSDCUSDT for DAI/USDC/USDT
{target} = {UoA} USD
{UoA} USD

Implementation details and behavior

{tok} Collateral token, strictly speaking, is Convex LP token - the one users get for staking Curve LP tokens in Convex pools. Since all invariant-related math stays the same as in Curve, we don't mention Convex in {ref} naming.

{ref} Synthetic reference unit best expressed as

$$\dfrac{D}{L}$$

where D = total amount of coins when the pool is in its balanced state and all the coins have an equal price L = total liquidity

The constant D is the same as in StableSwap invariant (v1) $$An^n \sum{x_{i}} + D = ADn^n + \dfrac{D^{n+1}}{n^n\prod{x_{i}}}$$ $$(ё)$$

which can be seen as a mixture of Uniswap's constant-product invariant and constant-price invariant. Curve holds this equation true on every operation.

  • D stays unchanged on fee-less swaps and grows when pool receives fees without fees,
  • L stays unchanged on swaps
  • both D and L change on liquidity added / removed in such a way that D / L stays the same

The 3 bullet points above combined mean that {ref} keeps its value on every kind operation apart from swaps with fees, in which case {ref} grows.

{target} = {UoA}

Convex Curve Fiat Collateral is meant to be used with tokens all of which are pegged to USD DAI-USDC-USDT and in stable Curve pools - v1, 3pool Expected:

  • {tok} == {ref}
  • {ref} is pegged to {target}, otherwise the collateral defaults on refresh
  • {target} == {UoA}

How does one configure and deploy an instance of the plugin?

  • Choose assets - stablecoins pegged to USD like DAI, USDC, USDT
  • Choose Curve pool - v1 or 3pool containing your assets of choice and mint Curve LP tokens
  • Choose Convex pool, stake Curve LP tokens to get your Convex LP tokens
  • Curve (Convex) supports 2+ assets in pools. So you need prepare feeds for each asset, find the required addresses on Chainlink
  • Deploy collateral using its constructor in the usual way

Convex Curve Non Fiat Collateral

Convex Curve Non Fiat Collateral is meant for to be used with volatile assets in Curve pools like Tricrypto. It will work with fiat stablecoins and stable pools like v1 and 3pool. The choice between the two should be made based on economic considerations.

UniconvexNonFiatCollateral can be used with any convex pool to claim rewards like stable pools which should no be retargeted or crypto pools like USDT-BTC-WETH

  • Expected: {tok} == {ref}, {ref} is pegged to {target} or defaulting, {target} != {UoA}

How does one configure and deploy an instance of the plugin?

  • Choose assets - stablecoins or volatile, can be mixed - in a volatile pool like Tricrypto
  • Mint Curve LP tokens in the pool of choice
  • Choose Convex pool, stake Curve LP tokens to get your Convex LP tokens
  • Curve (Convex) supports 2+ assets in pools. So you need prepare feeds for each asset, find the required addresses on Chainlink
  • Deploy collateral using its constructor in the usual way

Why should the value (reference units per collateral token) decrease only in exceptional circumstances?

see "Implementation details and behavior" section above https://classic.curve.fi/files/crypto-pools-paper.pdf v2 https://classic.curve.fi/files/stableswap-paper.pdf v1

How does the plugin guarantee that its status() becomes DISABLED in those circumstances?

It relies on Curve pool contracts being non-upgradeable, audited and trusted to keep the invariant.

Development

Uses @gearbox-protocol/integrations-v2 fork at github:chainhackers/integrations-v2, Solidity version changed to 0.8.9^ in the fork.

References:

https://classic.curve.fi/files/CurveDAO.pdf
https://classic.curve.fi/files/crypto-pools-paper.pdf v2
https://classic.curve.fi/files/stableswap-paper.pdf (v1)
https://curve.readthedocs.io/exchange-cross-asset-swaps.html

https://www.curve.fi/contracts

https://resources.curve.fi/crv-token/understanding-crv#the-crv-matrix
https://github.com/convex-eth/platform
https://docs.convexfinance.com/convexfinanceintegration/booster

Related Gitcoin bounties

Collateral Plugin - Convex - Volatile Curve Pools
Collateral Plugin - Convex - Stable Curve Pools