Let the option for users not to dump their CRV rewards earned within the strategies using Curve. Instead those CRV rewards would go to the Perpetual Passive Strategy + LP Farming.
For all strategies using Curve, instead of dumping the CRV Token for a certain APY, I would let the option for the user to place his “farmed” CRV into the Perpetual Passive Strategy (earning 3CRV) and then put automatically those 3CRV within LP Farming. In the end, this option allows three things :
for the user instead of earning CRV coumpounded automatically, the user earn SDT (not auto-compounded) with a better APY
for StakeDAO, it increases their holdings of CRV to get a better boost (which is the point of StakeDAO for those strategies)
it improves the synergy and the relationship between stakeDAO and Curve as there is no dumping of CRV (or less dumping)
My idea came from the perspective that StakeDAO wants to be a competitor against Yearn and other competitors. For that, stakeDAO needs more CRV but currently accumulates CRV only when people manually send them to the perpetual strategy.
On the other hand, stakeDAO is currently earning a lot of CRV through the strategies, but none of this CRV is kept on the DAO. It’s entirely dumped.
This CRV could be redirected to perpetual strategy + LP farming. Either entirely, or maybe only a % of it.
- Better APY for the user if the LP Farming for the Perpetual Strategy stays attractive
- Increase of the CRV held by StakeDAO allowing for better long-term strategies and improving StakeDAO against its competitors (Yearn)
- Better synergy with Curve
It could switch the selling pressure from CRV to SDT. I think several solutions can be used to prevent this, such as :
- put in place a vesting schedule for the SDT earned
- allow this strategy to only be used by StakeDAO enthusiats (long-term holder) by using NFT earned within StakeDAO
- Play with the % of CRV dumped or staked in the Perpetual Strategy (maybe 10% are staked for everybody by default, and long-term holders can switch this % from 10 to 100…)
It could also make all this become more difficult to understand for newcomers.