Accumulate $CVX tokens via Integral SIZE by Frax DAO Treasury with zero price impact

General Discussion
1

Motivation & Background

  • According to DAO CVX Leaderboard, Frax DAO is the largest holder of $CVX token on-chain. As Frax DAO accumulates more CVX tokens, Integral SIZE https://integral.link , a DeFi primitive for large orders, is an ideal venue for such transactions.
  • Integral SIZE recently listed CVX-ETH pool to allow traders to swap CVX and ETH based on a 30-min Time Weighted Average Price TWAP with zero price impact.
  • Trading $CVX tokens on SIZE will save Frax DAO money in terms of incurring zero price impact and lower fees. This is especially important when the CVX trade is large. A $200,000 trade of ETH to CVX could potentially incur up to 2% price impact on other on-chain venues.

Proposal

  • In this proposal, Frax DAO will accumulate CVX on SIZE size
    .integral.link/swap in the future.
  • This benefits Frax DAO in the following aspects:
    • Fee saving:
      • 1 bp on Integral SIZE.
      • 30 bps on Sushiswap.
      • 43.5 bps on Curve.
      • 1% on Uniswap v3.
    • Price impact saving: Integral SIZE offers execution of CVX-ETH pair at 30-min TWAP with zero price impact based on Sushiswap’s CVX-ETH price oracle.
  • Frax DAO can use SIZE within Gnosis Safe App. Details: mirror
    .xyz/0x7683AB2538FE4fd9Fd0b8863fFD6B664EF4Fa9b4/GZDy1oGW68kO7PCkiGUgpA942_yVNklj3dGXl2eLe20
  • In addition, Frax DAO can choose to provide liquidity with any liquid CVX and ETH tokens in the CVX-ETH pool on SIZE for high APRs.

More about SIZE

Integral SIZE is a decentralized exchange built for large trades of ERC-20 tokens. It allows trades to be executed at 30-minute TWAP with zero price impact. Announcement: twitter
.com/IntegralHQ/status/1506254024764403715?s=20&t=lU83at0GwVJR4cbvtbz97g, white paper: assets
.integral.link/pdfs/SIZE-Whitepaper.pdf. We were quoted in an interesting piece : twitter
.com/IntegralHQ/status/1506851577239273475?s=20&t=j9dW3NxjoMQx_22Hg-mp6w by TechCrunch: techcrunch
.com/2022/03/23/despite-declines-the-value-of-crypto-assets-in-defi-protocols-is-up-3x-from-a-year-ago/?tpcc=tcplustwitter recently regarding DeFi growth and TVL.

Key features:

  • For Traders: zero price impact of large trades including less liquid tokens.
  • For LPs: passive accrual of yield while achieving mean zero IL.
  • Reliant on an external price oracle such as Uniswap v2 and Sushiswap for price discovery over time.

Documentation: docs
.integral.link/size

Discord: discord
.com/invite/4aWJV3t85w

(Had to break the links)

2 Likes
2

I think the TWAP trading strategy is a great one and arguably the best for large volume traders. It seems evident that the entire DeFi ecosystem would benefit much from it if large volume traders incorporated or exclusively used the TWAPing strategy.

3

I have no about about this. Nice Approach

4

The TWAP trading concept is quite interesting and I think the Frax DAO stands to benefit from it.

5

Frax does not need to buy any $CVX, because we earn them via staking liquidity on Convex.

But I do like the TWAP trades, we have build something similar in Fraxswap we call TWAMM’s, where users can execute an order over a longer time period to avoid slippage: