This proposal aims to pause the 15,000 PNT/week incentives on Curve’s pBTC metapool, introduced by the pNetwork DAO with PIP-18. This is due to the high uncertainty in the future and stability of the metapool itself arising from Ren Protocol and renBTC.
Ren Protocol is suffering financial issues due to the FTX/Alameda collapse and the Ren development team has decided to sunset the Ren 1.0 network. Because of this, RenBTC might be a risky holding at this stage.
As a consequence of Ren 1.0 being dismissed, the protocols and pools integrating renBTC might also be dismissed or deprecated - this includes the currently incentivised pBTC metapool on Curve Finance (that would likely be deprecated in favour of a renBTC-free pool).
As approved by PIP-18, the pBTC pool is currently incentivized with 15,000 PNT/week coming from the pNetwork DAO Treasury.
By prudently pausing the PNT incentives on the pBTC pool, the DAO would reduce the risk of incentivising an obsolete and risky pool that might be deprecated soon.
If the early interruption is approved, this would save 15,000 PNT per week for the DAO Treasury, which would remain available for the DAO to allocate to more effective initiatives.
With PIP-18, the pNetwork DAO has agreed to allocate 15,000 PNT/week from the pNetwork DAO Treasury for a time frame of 6 months to incentivise the pBTC/sbtcCrv Curve pool. The sbtcCrv pool contains wBTC, sBTC and renBTC, and they are paired with pBTC.
Due to Alameda’s bankruptcy, Ren Protocol is suffering financial issues and the Ren development team has therefore announced the sunset of Ren 1.0 network - mints have already been dismissed and Ren 1.0 network is planned to be dismissed within 30 days from November 18th.
The disabling of mints means that renBTC could potentially lose its peg, while disabling burns means that renBTC token holders have a limited time frame to redeem the BTC collateral without potential complications.
For technical and security reasons, the protocols and pools integrating renBTC might also be dismissed or deprecated. As an example, recently MakerDAO DAO members voted unanimously in favour of removing renBTC as a form of reserve collateral; similar actions have been taken by BadgerDAO and other DeFi projects, while Ren Protocol is inviting RenBTC liquidity providers to exit their position from Curve.
It is likely that all Curve BTC pools that include RenBTC (including the pBTC metapool) will be deprecated for the same reasons and new renBTC-free pools created.
Should these pools not be formally deprecated, the potential risk of renBTC depegging or the pool severely unbalancing remains.
For these reasons and to act prudently, the DAO proposes to halt the PNT incentives to the pBTC Curve pool immediately.
If the proposal is approved, the 15,000 PNT/week would remain in the DAO Treasury and would be devoted to future DAO-approved initiatives.
The PNT incentives for the PNT/ETH Uniswap pool would remain the same and unaffected if this proposal is approved.
If approved, this proposal would halt immediately the weekly allocation of 15,000 PNT for incentivising the pBTC/sbtcCrv Curve pool.
Where to vote:
- pNetwork DAO Web interface
- pNetwork Widget at eidoo.app v2
- Snapshot (for BSC voters)