How to be BENT
How to be “BENT.” A New Way to Convex (Which was a new way to Curve)
When Convex Finance came out earlier this year, it was a revolution, not only of the mind, but in how we as a community would approach Stable centric yield farming on the Curve ecosystem.
Before CVX, if you wanted optimal rates for your stables on Curve, you would need to buy the CRV token and effectively “burn” it in order to get veCRV which would then allow you to get boosts on your yields of up to 2.5x. This veCRV would then also allow you to vote on the “gauge” weight, allowing you to push rewards towards your favourite pairs.
This was a genius flywheel, which more or less caused perpetual buy pressure on the CRV token since whales would just buy and burn it so they could… farm more CRV. :-D
There was one issue here however, it was that really optimized CRV farming was in fact a whales game with very few willing to first go through the learning curve on how to actually do it. On top, then put up what would effectively be “burnt” capital buying CRV with the hopes of farming it back over the next few years. Good for whale long game, bad for frogboy.
This was solved when an “anon team” decided to burn to veCRV a very large amount of CRV and created the CONVEX ecosystem. Convex was a revolution of the Spirit with accelerated rewards because instead of staking in CRV gauge you would instead stake on the Convex site and it would pass through to Curve, giving you not only the boosted CRV rewards, but the additional rewards of a new token, CVX.
This flywheel crystalized in legends with the addition of cvxCRV which allowed you to buy and burn CRV, but you got a liquid version of it in cvxCRV, while the burnt CRV went to veCRV vote to keep incentive boosts up. The final nail in CVX dominance came when you could stake your CVX and vote for (or be bribed) on how to allocate the veCRV owned by convex, which in effect is now controlling the yields of the multi-billion dollar Curve ecosystem and giving rise to a whole new class of frog friendly stables such as FRAX and MIM.
With the success of CVX domination, we come to a similar (but different) scenario as we did before CVX launched where it has effectively becomes an “insiders whale game” with CVX pushing towards the top 100 and intricate systems with voting and “bribing” to control the vote.
This is where BENT enters the movie.
Like CVX, BENT has been developed by an “anon team” and is more or less to CVX what CVX is to CRV, this is how it works:
- Anon will deposit stables to Curve but not “stake in gauge”
- Instead of staking these Curve LP tokens in Convex, they stake them in BENT which yields out all of the Convex rewards they would have received by directly staking on Convex minus 17% (more on this below) plus this yields a healthy amount of BENT, which will make up for and more than the 17% slash. Keep in mind this system is emulated from convex which itself takes a 17% clip from crv deposits.
- Anon can also stake in the DAI/BENT pool on Sushiswap for happy rewards or participate in single sided BENT staking or CVX staking.
- CVX staking to used to vote on the Convex Gauge and controlled by the single sided BENT stakers.
Fun right? The end result here is by staking your Curve LP or CVX into BENT instead of Convex you will yield more and this allows BENT stakers to effectively get a piece to control the Curve Gauge vote in a practical manner
Howday ho!
Risks and Details.
As it was with convex when it was launched, we have been audited and did our darn bestest to create a safe and bug free trustless ecosystem, however that being said, in the early days of the protocol, we suggest that you deposit with care.
For the 17% slash on Convex rewards, it is pretty simple, 10% goes to the CVX stakers (got to keep them fat and happy) 6% to the BENT stakers and 1% to the harvester. So the entire system is a decentralized perpetual flywheel.
We start with 5 pools:
mimCrv: https://curve.fi/mim/deposit
alusdCrv: https://curve.fi/alusd/deposit
3CrvCrypto2: https://curve.fi/tricrypto2/deposit
fraxCrv: https://curve.fi/frax/deposit
cvxcrvCrv: https://curve.fi/factory/22/deposit
What can you do right now?
Curve LP Staking: LIVE
- Additional Curve pools will be added weekly
DAI/BENT LP Farming: LIVE
BENT staking: Coming Soon
CVX staking: Coming soon
BENT staked voting: Coming Soon
Hows the BENT Tokenomics?
- 100M Max Supply
- 50% Curve LP Rewards, rewarded pro-rata for the CVX received on Bent Finance
- 20% Liquidity Mining, distributed over 4 years for BENT/DAI SLP
- 8% CVX Staking, distributed over 4 years
- 2% Airdrops, more to come on this..
- 0.5% Floating Liquidity
- 2.5% Seed Investors, 1 month cliff then 6 month vesting
- 12% Team, 3 month cliff then 18 month vesting
- 5% Treasury, 3 month cliff then 18 month vesting
