What Is Concave (CNV)? Complete Guide Review About Concave.

What Is Concave (CNV)?

What Is Concave (CNV)?

Concave is a community-driven, product and investment organization that aims to bring value to investors through the development of innovative DeFi products and active treasury management. At launch, they will introduce several novel solutions to grow its treasury while ensuring long-term investors receive the highest returns. Previous conceptions of bonding-staking models suffer from one key problem stakers are diluted in favor of bonders. This arises because nothing is free in order to reward one user group (bonders), you must take from another (stakers). Your model provides a solution to this by introducing liquid staking terms and a cap on the volume of CNV that can enter non-dilutive pools.

With liquid staking mechanisms, we categorize stakers by term length and use categories to differentiate rewards. Instead of penalizing all stakers, the protocol penalizes short-term stakers with dilution, rewards long-term stakers with non-dilution, and attracts bond revenue in the process. Liquid staking mechanics have been designed to return the highest rewards to long-term stakers utilizing concepts of anti-dilution. The protocol will allow any Concave holder to enter liquid staking terms that range from 45 days – 365 days.

Liquid staking positions will receive boosted rewards based on term length. Investors in the longest-term liquid positions will receive the highest returns. Rewards will be issued in both the native CNV token and non-native tokens such as DAI or Frax. The reward structure is documented below.

Concave Storage Key Points

Coin BasicInformation
Coin NameConcave
Short NameCNV
Circulating Supply179,367.47 CNV
Total Supply183,859
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

Bonding-Staking

The Concave MVP Protocol is inspired by the general bonding- staking concepts popularized by Olympus. Whereas most other forked protocols penalize stakers in favor of treasury growth via bonding, a has been built from the ground up with a focus on delivering value to long-term stakers via bonding and staking mechanisms. Composable bonding mechanisms have been designed to bring various bonding products to market and are implemented with back-end functionality to control supply inflation and optimize bond issuance as a function of market conditions.

These mechanisms are underlined by a novel staking reward structure that incentivizes stakers through anti-dilutive bonding emissions and treasury dividends that are paid out in non-native tokens through treasury investment strategies. Both bond positions and liquid staking positions are implemented using NFTs to facilitate secondary markets. These ensure further revenue streams for investors and incentivize users to enter the most beneficial positions for long-term price stability and protocol health.

Bonding Mechanics

The implementation of bonding mechanics is built with the goal of offering bonds for virtually any ERC20 token, pricing model, and issuance model. This mechanism gives the Policy Team a vast arsenal of tools to increase Treasury, as both pricing and issuance are designed to support plug-and-play models. Composable bonds allow for the constant innovation of new bonding products and pricing models to be put into production without the redeployment of smart contracts. Upon protocol launch, Concave will focus on fixed-term accrual bonding of stable coins and LP tokens using custom bond pricing models.

Bond issuance will be optimized and controlled by an off-chain algorithm that will manage target debt by generating a desired supply curve and accelerate bond issuance as a function of market conditions. Simply put, the protocol will maximize the value of the treasury with respect to supply. In contrast, the Olympus model maximized supply with respect to the treasury. This ensures bond issuance is accelerated or decelerated when the maximum return can be rewarded to staked investors while aggregate supply growth is regulated.

Bond Pricing Model

The custom bond pricing model leverages the idea of virtual AMM reserves popularized by Uniswap V3. Virtual reserves are used in conjunction with actual reserves to derive pricing. Policy can modify virtual reserves to directly influence bond pricing as well as price impact. Since the only direct influence users have on price is positive, Concave artificially create negative price action through a time based decay mechanism.

This AMM approach expands on the traditional xy=k market making formula by utilizing virtual values. The variables x,y, and k are a derivative of the real assets; since they are virtual, they can be adjusted dynamically to control the amount of slippage that occurs when calculating the bond price. Therefore, controlling for slippage adjusts the bond price with respect to the bond debt available and the size of the bond purchase.