sCVR and csCVR

Staked Caviar (sCVR)

Staked Caviar $sCVR is essentially a receipt token and a new way to manage $CVR staking versus the old method using the CaviarStakingChef contract.

Previously users deposited into the Staking Chef which tracked deposits and returned the correct reward to users based on that deposit. With Staked Caviar, users now recieve the $sCVR token as a receipt of their deposit. $sCVR has no special properties or functionality, however it can be deposited into the Compounding Staked Caviar vault.

Compounding Staked Caviar (csCVR)

Compounding Staked Caviar $csCVR is an ERC-4626 vault for $sCVR. The vault is designed to compound the stablecoin rewards accrued to the $sCVR deposited into it by claiming those rewards and converting them into more $sCVR in the backing.

$csCVR Yield Implementation

• $sCVR deposited into the standard ERC-4626 $csCVR vault.

• A Gelato task looks for the optimal conditions to claim $USDC yield from the $sCVR backing, completing the process no less than every five minutes.

• The claimed $USDC rewards are converted into $CVR in the most efficient way possible.

  • $USDC is initially swaped into $PEARL

  • From there, the $PEARL is either swapped into $CVR , minted into $CVR at a 1:1 or a combination of the two

• The vault restakes the $CVR into $sCVR, increasing the $sCVR held in the $csCVR vault and distributing that yield back to $csCVR users or $csCVR positions in Stack

$csCVR ERC-4626

$csCVR is an ERC-4626, a standard used to optimize and unify the technical parameters of yield-bearing vaults that represent shares of a single underlying ERC-20 token. When users deposit $sCVR tokens into the $csCVR vault (using the ERC-4626 standard), they receive $csCVR tokens in return, representing their share of the vault. As the value of the vault goes up i.e. Caviar rewards are compounded into new $sCVR, the value of $csCVR also goes up.

$sCVR - Denoted in amount

$csCVR - Denoted in shares

Upon $sCVR deposit, $csCVR shares received:

shares = deposit amount * $csCVR current supply / balance of $sCVR in vault

Using $csCVR

For now, $csCVR can only be accessed by opening a position on Stack.

Open a position with $sCVR on Stack. The $sCVR is automatically deposited into the $csCVR compounding vault. $csCVR is minted and used as the collateral in the Stack position.

To simply compound, deposit $sCVR into a new postion and borrowing noting against it.

If you choose to borrow against it, yield from $sCVR can offset accrued fees creating the scenario of a "self-paying loan."

Lastly, $csCVR can be leveraged for even higher yields. Keep in mind that leverage is risky and you can lose all your funds.