Conic Debt Pool

What is the Conic debt pool?

The debt pool accumulates assets that can be claimed by LPs that were affected by the Conic exploits on July 21, 2023. The debt pool utilizes the Conic debt token (cncDT), which can be burned to redeem a share of the assets that the pool holds.

How does the debt pool accrue value?

The debt pool receives the following revenue streams:

• Platform fees: Conic Omnipools charge a 10% fee on all CRV and CVX rewards. For the first 12 months after Conic v2 launch, 100% of all platform fees will be paid out to the debt pool. In 12 months, this may be revised via a DAO vote.

• Bonded cncCRVUSD rewards: When LPs bond cncCRVUSD for vlCNC, the cncCRVUSD gets staked to earn CRV, CVX, and CNC, and then streamed to vlCNC holders over the following week. However, until the cncCRVUSD LP tokens are unstaked by vlCNC holders, all staking rewards earned get allocated to the debt pool.

Who gets Conic debt tokens?

LPs affected by the ETH Omnipool and crvUSD Omnipool exploits are eligible to claim debt tokens (cncDT).

What is the maximum supply of debt tokens?

The maximum supply of debt tokens could reach 4,337,233 cncDT. This is equal to the total USD amount that was lost during the exploits.

How do Conic debt tokens work?

Eligible LPs have 6 months time to claim their debt tokens. The total supply of debt tokens increases only when debt tokens are claimed/minted. For example, if 20% of eligible LPs do not claim their debt tokens then the total supply will only reach 80% of the maximum supply.

Debt tokens can be redeemed for a share of the assets held by the debt pool (i.e., CRV, CVX, and CNC). The share will always be paid out in all three assets. However, the amount of redeemable assets per debt token depends on the circulating supply (i.e., not on the maximum supply). When debt tokens are redeemed they get burned and the total supply decreases. Hence, debt token holders should be aware that the circulating supply can fluctuate over time.

Do Conic debt tokens expire?

No. Debt tokens will always be redeemable for the proportional share of assets held in the debt pool, even if no more funds get streamed to the debt pool.

How are debt tokens claimed?

Conic debt tokens are claimed via the terminal on the Conic UI. On the terminal at anytime you can use help to see a list of commands. Before claiming debt tokens users must first connect their wallet. After a wallet is connected the claimable command can be used to view how many debt tokens can be claimed. To claim your claimable debt token balance use the claim command and sign the prompted transaction in your wallet.

How are debt tokens redeemed?

Debt tokens can be redeemed at anytime via the terminal by using the redeem command. The tokens that can be redeemed will change over time as the debt pool accrues more tokens and can be viewed by using the redeemable command.

Note that debt tokens can only be redeemed once. After redeeming your share of the debt pool your debt tokens will be burned

How does the redeemable amount increase over time and why?

The redeemable amount per debt token depends on the funds held by the debt pool (CRV, CVX, CNC) and the total supply of debt tokens. The total supply of debt tokens increases when debt tokens are claimed (minted) and decreases when debt tokens are redeemed (burned). The debt pool accrues funds from Omnipool fees. Hence, over time the funds in the debt pool accumulate.

What tokens can you redeem for?

Debt tokens can be redeemed for a combination of CRV, CVX and CNC. These stem from the protocol fees that accumulate in the debt pool.

When should I redeem my debt tokens?

Debt tokens can be redeemed indefinitely. However, a single debt token can only ever be redeemed once for a share of the funds that are held by the debt pool at the time of redemption.

How long will the redeemable amount increase for?

The initial funding of the debt pool is based on protocol fees charged on Conic Omnipools. This initial mechanism will last for 52 weeks.

Can I swap my debt tokens somehow?

The Conic debt token is an ERC20 token and can therefore be transferred. A Curve pool exists, where the debt token can be swapped for crvUSD: https://curve.fi/#/ethereum/pools/factory-crypto-360/deposit

Why did my redeemable amount go down suddenly?

The total supply of debt tokens may change over time. The supply increases when debt tokens are claimed (minted) and decreases when they are redeemed. For example, if the debt pool holds few funds but the debt token supply is low then the amount of CRV/CVX/CNC per debt token could be relatively high.

Why has the redeemable amount not gone up in a while?

This may be due to the debt token supply increasing at a similar rate as the funds that accumulate in the debt pool. However, the total supply of debt tokens will be known after 6 months (as this is when claiming debt tokens is no longer possible).