An overview of the Conic CNC bonding mechanism.

What is CNC bonding?

The launch of Conic v2 introduces a 52 week long bonding mechanism. Holders of cncCRVUSD (the Conic crvUSD Omnipool LP token) can bond their LP tokens for vlCNC (i.e., CNC that is locked for 4-8 months) at a potential discount.

Who can bond?

Anyone who holds cncCRVUSD LP tokens can bond as long as they hold greater than or equal to the minimum amount required to bond. The minimum amount that can be bonded is 1,000 cncCRVUSD LP tokens.

What happens with the bonded cncCRVUSD?

The bonded cncCRVUSD LP tokens get streamed as rewards to all vlCNC holders in the next epoch. Until these cncCRVUSD LP tokens get claimed by vlCNC holders, they are staked and earn rewards. All staking rewards (CRV, CVX, CNC) get paid out to LPs of the Conic Debt Pool.

What is a bonding epoch?

An epoch refers to 7 days in which a fixed amount of vlCNC can be bonded for. As time passes in an epoch, a bonding discount increases. Hence, bonding for vlCNC becomes cheaper throughout an epoch to incentivize bonding. However, a discount may not be applied if the full vlCNC/epoch amount is bonded for at the start of a new epoch. There are 52 epochs in total.

How much CNC is allocated for bonding?

A total of 400,000 CNC has been allocated for bonding.

Where does the bondable CNC come from?

The CNC allocated to the bonding mechanism comes from the DAO treasury. The aim is to utilize the allocated funds to create sustainable TVL and revenue streams from platform fees on Curve and Convex. The original CNC inflation schedule is completely separate to the CNC allocation used for bonding.

How long will bonding be enabled for?

Bonding will be enabled for 1 year (52 epochs). Once this period is over, no more cncCRVUSD tokens can be bonded for vlCNC.

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