Following the AMA discussion on Tuesday Dec 2, it is the appropriate time to enact Asymmetry’s first vote(s) in Governance, all of which can be adjusted in the future should the community wish to do so. The vast majority of the community have shown to be in favor of voting on a potential change afCVX and USDaf to fee/revenue structure.
For simplicity, the intended voting plans will be drafted as (Vote 1) for afCVX, and (Vote 2) for USDaf.
All options for each vote are outlined below:
Vote 1: afCVX
Original proposal forum: https://gov.asymmetry.finance/t/proposal-afcvx-fee-switch-distributing-revenue-to-veasf-holders/
Option 1:
Enact a 10% performance fee on the YIELD EARNED on afCVX, minus $5k/yr for operating costs. The fees earned on afCVX would be distributed to veASF holders as USDaf, shown as boosted APRs, linearly correlated to lock-length period, that users can claim from an Asymmetry dashboard.
Note that if this option is selected, the team will prioritize the contract + frontend flow for having a “claim” button, but there is a small amount of dev time required to test and get it right.
Option 2:
Enact a 10% performance fee on the YIELD EARNED on afCVX, minus $5k/yr for operating costs. For the fees earned to go towards Asymmetry’s ‘War Chest’ (aka. Protocol Owned Liquidity), to support long-term growth of the protocol and lower ASF emissions long-term.
Option 3:
No fee switch: afCVX to remain fee-less.
Vote 2: USDaf
Original proposal forum:
https://gov.asymmetry.finance/t/enhancing-utility-and-fairness-for-veasf-holders/
Option 1: Direct Revenue Distribution to veASF Holders
The fees earned on USDaf would be distributed to veASF holders as USDaf, shown as boosted APRs, linearly correlated to lock-length period, that users can claim from an Asymmetry dashboard.
Note that if this option is selected, the team will prioritize the contract + frontend flow for having a “claim” button, but there is a small amount of dev time required to test and get it right.
Option 2: Protocol-Owned Liquidity (POL) Acquisition
Revenue would fund Asymmetry’s ‘War Chest’ purchases of protocol owned liquidity, such as vePENDLE, vlCVX, or veCRV—All of these are cashflowing assets and serve strategic purposes, ultimately lowering ASF emissions long term.
Option 3: ASF Buyback and Burn
Revenue could also buy back and burn ASF.
Option 4: No Change – Continue reinvesting in USDaf Incentives
Continue directing all revenue toward liquidity incentives for USDaf.
Option 5: Hybrid Model (Combining Option 1 and 4)
A balanced approach could allocate a portion of revenue to USDaf incentives while distributing the remainder to veASF holders, combining growth with direct rewards.
If this option is chosen, a second vote will take place to determine the ratio between revenue distribution and USDaf incentives.
Note that whichever path is chosen may require development time to implement, but it will be prioritized.
A 48-hour period will be given if a revision is needed to these proposals. If no revision is needed, voting will begin as follows:
Vote 1 (afCVX): Friday Dec 5
Vote 2 (USDaf): Monday Dec 8
Voting periods last for 7 days, in line with the standard across DeFi, users can use their veASF to cast votes.