FAQ

Q1: Is there a lock-up period for external yield bearing tokens?

A: No, just like depositing on many other Solidly/Velodrome forks, users can withdraw their LPs whenever they want to.

Q2: Are there $CVGX emissions, or are they distributed on $oCVGX only?

A: The emission token for ConvergeX is $oCVGX and $CVGX token is either bought at the market price from the bonding curve/bought at the floor price (1 ETH) with $oCVGX.

Q3: What is the point of giving $oCVGX rewards instead of $CVGX rewards to LPs since the purpose of the $oCVGX is to be converted to $CVGX at some point or being burned for $vCVGX.

A: It is to control the $CVGX supply, and ensure that the floor price of 1 ETH is always kept. If CVGX was emitted on gauges instead of oCVGX, the $CVGX emitted could be sold continously to the bonding curve, resulting in a non existent price floor. When the emissions tokens are $oCVGX however, the users can only sell the emission token by giving the bonding curve 1 ETH for 1 oCVGX, ensuring that the floor price would always be backed.

Q4: How does using virtual assets on the reserves work, is there any chance that real assets would be needed to back the protocol?

A: The usage of virtual assets is made possible with how the $CVGX & $oCVGX supplies are being controlled. At day 0 when there's no circulating CVGX supply, the $CVGX on the bonding curve's price is set to 1 ETH. For $CVGX to circulate someone must first purchase it from the bonding curve, but at this point now there is ETH to sell that circulating CVGX into. If it is bought, the price would increase, and then at the worst case scenario it can be sold to the bonding curve again. Once that happens, there is once again no circulating CVGX to be sold to the bonding curve and therefore no virtual ETH will ever be needed as liquidity. More information on that could be found from here.

Q5: Do the voters of yield bearing gauges collect the underlying yield of those gauges?

A: Yes, just like in all the Solidly models, the LPs receive the emission tokens ($oCVGX) and the voters receive the underlying yield of these LPs.

Q6: What provides the necessary buy pressure to keep the price above the base level? Is there a buyback burn mechanism?

A: There isn't a buyback & burn mechanism, but there are plenty of incentives for a user to enter the ecosystem, which has been touched on the topic of Risk Free Borrowing.