Concave Explorer Event Recap (Q&A Session on Litepaper)

Mar 1, 2022

Miners! Thank you all for stopping by our Concave Explorer event last Saturday!

The heart of the event was the intense Q&A session where the team dropped some burning alpha and also leaked some protocol images!

For those that couldn't make it, here's a recap of the Top 10 questions that were asked! Having said that, we recommend that you watch the whole video so you don't miss anything ;)

1. Could you go into more detail regarding the marketplace and the trading aspects?

We will have an internal bonding marketplace to best support our protocol. Staking positions can be traded here. We have to do this in house because you cannot host NFTs on Opensea that have a rebasing or yield mechanism. If we were to put our NFTs to a third party, we would be subjecting our community to paying for higher fees as well. You may even be able to trade this bond for a higher value compared to when you first purchased it depending on the market speculation, and it gives a liquid market to give more flexibility to the end user. For a little bit of alpha, we are looking to also represent these positions in a non-segmented market for a project that we are referring to as X-token. It's a complicated project because of all the variability with the staking positions, but that is a question that we are looking to solve that will not be in the MVP.

2. Are the Dividend payouts also staked or are they liquidity for the investor?

In terms of the dividend payment, payouts will not be in the native token. You will be receiving a dividend payout at a certain interval that is associated with your locked staking position. You will also receive a boost to the dividend payout if you are locked for a longer term during the payout period. The dividend payouts will be immediately redeemable at the point where they are paid out.

3. Is there any updates on the public security audit?

We discussed this a few times before. We plan to get an audit, but we don't plan to be blocked by an audit. Originally, our intention was to have everything fully audited before launching. However, we have since shifted our approach. To the audits and the quality, many audits are pretty dubious. I myself have been a part of audited protocols that have been exploited. We are doing robust internal testing to ensure our protocol is safe and will conduct careful internal audits. If we wait for an audit, we could potentially be waiting for a few months which would push us past Q2. We will be circulating our contracts to our network of engineers that we are connected with and are looking to offer generous bug bounties to not only our network of engineers but also to the community.

4. Will all lockers receive a benefit of their pool from a bonding event?

We don't want to be prescriptive about the exact amount of supply that every pool will receive, but we can confirm that the longest lock will receive 100% of that growth. Similarly, you will receive a depreciating cut as your term length decreases. The 45 day term will receive a lower proportion than the longest lock.

5. Can you elaborate more on the P-Tokens?

The majority of the P-Tokens will be given to the community. P-Tokens are basically unredeemed longest staking positions. I promise today that P-Token holders will receive the highest boosting on the dividends received if you don't redeem it. Send it. The P-Tokens will be given to our contributors and community through our community incentive program; we will have more information about that program soon.
Some protocol images were intentionally leaked by our design team ;)

6. Are the dividends automatically transferred to the wallet holding the NFT or do NFT holders have to claim the dividends manually?

There are two options; either they are redeemable in the protocol UI, or they could be airdropped directly to the wallet. As far as what approach we finalize with, we are not sure at this moment. We will be giving more information about this as we get closer to launch.

7. For the Locked staking, is it similar to vesting where the rewards will unlock linearly or will they only be available once the period expires?

The rewards are available once the full period has expired. The dividend payouts will be immediately available upon payout. Those are the two mechanisms. It might be helpful to conceptualize these positions as a temporary shareholder in Concave. The ownership entitles you to a percentage of revenue as dictated by the position that you hold. We want to incentivize people to hold their locked staking positions and encourage people to be stakeholders in the community.

8. Will I be able to use CNV in a lending protocol as collateral in the future?

We do plan on making lending and borrowing markets. We have even considered taking a page out of Liquity's book and using CNV as a collateral which would entitle you to a certain amount of stables. This is in the works and is planned but will not be part of the MVP. Look forward to more information on this in the future.

9. If you stake for one year, there is negative inflation. Does this include BBT and P-Tokens?

Yes, this does. All of our supply level dilution calculations take into account any supply that was redeemed as a function of BBT and P-Tokens. Just to let everyone know, we have a number of functions that are running off chain to manage what we call our moat. We don't want to put everything directly in the smart contract. However, everything regarding dilution is coded directly in the smart contracts and can be vetted along those lines.

10. In regard to the investment research, specifically the early seed investments and venture style investments, what is the process by which these protocols are being evaluated upon?

There are definitely a couple fronts. The process goes through our investment researchers that come from the community. We look at everything together. The first thing we look at is the fundamentals. What kind of utility is this project providing? We also look at the team behind the project, as well as evaluate the partnerships as well. That is the first layer of basic investment. The second step is to think about not just investing with money, but investing with knowledge and figuring out how to help these projects better as a partner. The big potato is that they come to us, we vet them, we invest in them, and we ask the main question. How can we help you guys to grow the project price, the marketcap, and how can we make your systems more efficient. We have many tools in our toolbox to do this. You will see more disclosure as we launch.

We're close to launching the protocol! Stay tuned!