[CurveLP-cDAI-cUSDC] MIP6 Collateral Onboarding Application

[CurveLP-cDAI-cUSDC] MIP6 Collateral Onboarding Application for Compound Curve LP Token

  1. Who is the interested party for this collateral application?


  1. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

Curve finance is a decentralized exchange platform focusing on swaps between like assets (stablecoins, wrapped assets, etc). The Curve AMM formula provides amplified liquidity around 1:1 ratio, which allows for larger trades with low slippage and better capital efficiency.

The Compound Curve pool (containing cDAI and cUSDC) was Curve’s first stablecoin LP pool. It earns underlying interest from the Compound money markets, as well as additional trading fees from Curve.

  1. Provide a brief history of the project.

Curve launched in the beginning of 2020. The Compound curve pool was the first pool offered by the protocol. Over the past year, Curve has added several additional USD stablecoin pools and other assets. However, the Compound pool stands out due to being the only USD denominated LP pool that does not include USDT.

  1. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Curve whitepaper: Curve.fi

Documentation: https://resources.curve.fi/ Curve.fi

Website: https://www.curve.fi/

Curve Source Code: GitHub - curvefi/curve-contract: Vyper contracts used in Curve.fi exchange pools.

CurveLP-cDAI-cUSDC token: https://etherscan.io/token/0x845838df265dcd2c412a1dc9e959c7d08537f8a2

cDAI collateral application (not yet onboarded): [cDAI] MIP6 Collateral Onboarding Application

cUSDC collateral application (not yet onboarded): [cUSDC] MIP6 Collateral Onboarding Application

  1. Link any available audits of the project. Both procedural and smart contract focused audits.

Audits: Curve.fi

  1. Link to any active communities relating to your project.

Twitter: https://twitter.com/CurveFinance

Telegram: Telegram: Contact @curvefi Telegram: Contact @curveficn

Discord: Curve Finance

  1. How is the applying collateral type currently used?

CurveLP-cDAI-cUSDC allows DAI and USDC holders to deposit their assets, in order to earn lending and trading fees. In addition, the LP token can be staked in Curve gauges to earn CRV inflationary rewards. Curve users can access this liquidity to trade funds between DAI and USDC.

  1. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

Curve LP tokens are permissionless assets, no party bears legal responsibility for the asset.

USDC is issued by Centre, a consortium of Coinbase and CirclePay. It represents a claim on $1 of cash or equivalent assets held in reserve. Centre is primarily governed / supervised under US law.

  1. Where does exchange for the asset occur?

CurveLP-cDAI-cUSDC can be exchanged for underlying assets directly via the Curve finance contracts. Once the LP has been redeemed for cUSDC and cDAI, these deposit tokens can be redeemed for underlying DAI and USDC via Compound. DAI and USDC are widely traded on DEX and centralized exchange platforms.

  1. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.


  1. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.


  1. (Optional) List any possible oracle data sources for the proposed Collateral type.


  1. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.


Notes: Curve LPs can be staked in gauges to earn CRV token rewards. Maker would need to design a way to stake LP tokens to capture this yield. The Curve system also allows LPs to boost earnings by locking CRV tokens. It may be advantageous for Maker to stake CRV in order to boost vault holder returns, but this would require approval from Curve governance to whitelist a Maker governance contract to lock CRV tokens.

cDAI and cUSDC have not yet been onboarded to the Maker protocol. Thus far, Maker has only onboarded LPs where all constituent assets are already supported. For this reason, onboarding Compound Curve pool may take more review and domain work versus other collateral assets. The liquidity supplied to Compound through this LP may also compete with MakerDAO’s other vault offerings, and the costs and benefits to the overall portfolio would need to be carefully considered.

Disclosure: I have financial interest in tokens mentioned. This collateral application is for informational purposes only, and does not constitute advice of any kind.

Copyright and related rights waived via CC0.


So the majority of the yield from Curve pools generally comes from the CRV subsidy rewards. Giving vault holders access to these rewards is mandatory for strong demand for these vaults. So will it work like this:

  1. Deposit cCurve LP token into vault.
  2. Maker then deposits cCurve into the Curve gauge (to start receiving CRV rewards) while crediting the user with the vault deposit.
  3. User can claim the CRV rewards (and any other incentive rewards like SNX) from the UI within oasis at any time he/she wants?

This is certainly some added complexity that we need discussion/planning around as to not create delays for onboarding this collateral. Curve has 4.3B in deposits and accessing this collateral is a major opportunity for Maker.