Congruent Ideation

Background /

The Metaverse is not limited to simply Gaming, DeFi, Social, or NFTs. It’s scope is much broader and more inclusive than that. And DAOs, such as MetaversePRO, are reinventing the ways in which members of different societies interact with one another. Indeed, DAOs are much like individual tribes, and when two tribes interact with one another, the result is a non-linear development of both tribes.

New interactions, such as Dao-to-DAO loans and DAO wars, are becoming more common. Taking DAO wars as an example, we currently see very large protocols in the DeFi space snapping up CRV/CVX and other governance tokens so as to hold sway over Curve Gauge. This represents a major shift in the crypto world and, no doubt, marks just the beginning of the “Curve Wars”.

Curve is truly a behemoth, holding TVL of USD 23 billion, or 8% of the entire DeFi TVL, making it the largest DeFi protocol by far. And, because Curve operates among stablecoins (USD, Euro), it represents an extremely low risk yet high reward platform. Indeed, Curve is a core revenue generator for nearly ⅓ of the entire DeFi space.

The MetaversePRO members and the Core Team are planning a bold new move with an investment in Congruent, which is designed to be an OHM fork focusing on CRV/CVX and operating on the Ethereum network. Congruent is envisioned as a DAO-structured concept that will utilize the OHM model to accumulate CRV/CVX (with other governance tokens to be added later) so as to hold an influential voting position via CRV/CVX and thereby generate rewards back to the platform and increase the overall value of Congruent, itself. To achieve this, MetaversePRO intends to invest in and launch Congruent and to eventually merge MetaversePRO into Congruent, making for a much more formidable project on the larger Ethereum stage, where many more lucrative opportunities exist. It’s time for the Meta Army to gear up, level up, and jump into the “Curve Wars”!

To be sure, by choosing to throw our hat into the “Curve Wars” ring, MetaversePRO is forging a bold and ambitious new path that will put it in a new class within the DeFi space.

Related Article:

<https://medium.com/coinmonks/convex-curve-curve-d7e28cd6c1d9>](<https://medium.com/coinmonks/convex-curve-curve-d7e28cd6c1d9>

We have already seen a number of very large DeFi protocols, such as Ohm, Convex, Frax, Spell, Redacted (OHM subDAO), and YFI, entering the Curve Wars. So, let’s take a look at this in more depth.

1. Convex (CVX) is currently the largest yield aggregator in the DeFi space and focuses on earning rewards from CRV and from locking up CRV via its CVX/CRV liquidity. As a result, Convex currently holds nearly ⅓ of the circulating supply of CRV, which now makes Convex the focus of many other large DeFi projects as they now battle over CVX in the ongoing Curve Wars.
2. In order for $Meta to become a reserve currency it needs to be used and accepted across a range of platforms within the Meta Lego system. We can see that other alliances, such as Frog Nation, have been quite successful with this type of strategy, with Daniel using the income generated from Curve to build things that are giving DeFi OGs a run for their money. In fact, it is very possible that VC-funded projects, like UniSwap, AAVE, and MakerDAO, will be unseated as the power of community-led projects overwhelms them.
3. Congruent is a platform that has been conceived by the MetaversePRO Core Team and its OGs with the aim of creating an OHM fork to focus on fighting for CRV governance control. But, the aim is to expand beyond that to also incorporate other governance tokens and to become a “governance as a service (GAAS) platform. Congruent will use (3,3) staking as a means of attracting an increasing number of CRV/CVX tokens (or other governance tokens) and then hold them in the Treasury, thereby gaining control over the CRV gauge, and then using this as the engine to continue expanding the Meta Lego ecosystem.

Plan of Action:

Steps to be taken: all assets in the Treasury will be used to invest in the curve war project.

1. MetaversePRO will use all funds from the Treasury to participate in the token sale of Congruent (essentially investing in Congruent) and will then swap the Congruent tokens received (GAAS, Governance As A Service) at a set ratio of $Meta tokens so that all $Meta holders effectively become GAAS holders (For example, if MetaversePRO currently has 10,000 $Meta tokens in circulation, and 1,000 GAAS tokens are purchased, then every 10 Meta tokens could be swapped for 1 GAAS token).
2. Congruent will hold a new funding round on the Ethereum network.
3. Congruent will use funds raised to purchase CRV or CVX from public sources or OTC sources and then lock them on convexfinance.com to secure voting rights.
4. Because GAAS will effectively represent CRV governance rights locked in the Treasury, one can view the Congruent Treasury as the value of governance rights held.
5. Congruent will focus on liquidity solutions to attract CRV/CVX and other governance tokens.
6. Congruent will act like a currency and will tokenize governance. The GAAS token will be represented by the mathematical symbol, ≅.

The Benefits of Joining the Curve Wars /

1. CRV /CVX will serve as the backing that will give GAAS its value in governance, and GAAS will also eventually be backed by other governance tokens as well. Going forward, GAAS will allow for different layers of governance, which will allow it to go from controlling a single governance point to controlling multiple governance points. Just imagine the power that Congruent will wield once its tokens hold governance power over multiple platforms at once.

With vlCVX (voting locked CVX) allocated to the bribe pools on Votium, rewards will flow in every two weeks. The most recent such round saw bribes of USD19million. This will mean direct rewards for Congruent members, both for the Congruent Treasury and for individual GAAS token holders.

2. Each address that participates in the voting receives bribe distributions. Convex currently supports voting with CRV but will soon add Frax and others.

3. Congruent is Meta Lego’s foray into the Curve Wars, and will help solidify Meta Lego’s position and reputation, and will also attract more developers to build new pieces that connect to the DAO via Meta Lego.

4. Controlling the CRV Gauge will be key to forging new cooperations going forward.

5. Purchasing governance tokens while they are undervalued means that this is also a shrewd value play, whereby the Treasury can also benefit from a rise in the value of the CRV/CVX tokens, and thereby expand the Treasury to a much larger scale.

Risks /

1. What if Curve were to fail?

Curve is currently the undisputed backbone of the DeFi space and, if it were to suddenly come to a halt, a number of very large platforms would also become unrecoverable. Indeed, many of the pieces of the DeFi world have become so interdependent that they wouldn’t be able to survive if one of those pieces were suddenly missing. Having said that, the more players that enter the space and the more interconnections that are formed, the more stable and indispensable Curve’s position becomes. In that respect, both in terms of trading volume and TVL, Curve seems to be very well situated and firmly planted in the top position.

2. CRV /CVX security risks

Holding the top 1 and 2 positions in terms of TVL means that many investors already consider these to be very safe bets. Plus, they have already been through multiple audits and white hat reviews with no significant risks discovered to date. We believe that their place as the top 1 and top 2 positions in terms of TVL have come from being well trusted within the DeFi community.

3. CRV/CVX governance failures

If Curve were to one day change its governance rules, this would effectively collapse the CVX governance model and, in turn, would collapse CVX’s entire product line. While this is not entirely impossible in the DeFi space, we are confident that many other alternatives would quickly rise up to take their place. Plus, Congruent intends to also work across other governance tokens, rather than just focusing on Convex, and therefore should be able to adequately spread out and mitigate these risks.

4. The investment in CVX/CRV could fall in value

If the prices of CRV/CVX were to see a major drop, this could seriously affect the Treasury of Congruent. As such, we will do our best to acquire CRV/CVX via OTC purchases so as to lower the overall cost of acquisition and provide an added buffer of protection. But, as long as CRV/CVX maintains its governance power, there will continue to be demand, even if protocols may need to reallocate their holdings from time to time. Daniele, for example, keeps buying more and more CVX but still holds less than 15% of the total circulating supply. And, as more tokens come into circulation, we expect this holding ratio to continue to slide. But, based on current bribes being paid out, a full return on investment could be achieved with CVX within a two-year period (and this is the most conservative estimate). So, with these types of assurances built in, and so much upside potential available, an investment in CVX seems very attractive.

Proposal and Implementation /

1. A 2/3 super majority threshold in favor will be required in order adopt the resolution
2. MetaversePRO will invest fully in Congruent, with the Treasury of MetaversePRO effectively moving into the Congruent Treasury
3. Meta token holders will have their tokens swapped directly for Congruent tokens
4. The Meta DAO, including all of its current structure, teams, and product lines, will continue under the new Congruent name.
5. 1xNW, BMeta, Holy, 0xMeta, Freddy, Carrot, and Io will all stay on as the Core Team of Congruent.
6. Several multisig slots will be reselected so as to bring an added layer of trust

The MetavesrePRO DAO already has a professional mod team, a policy team, a product team, a marketing team, a treasury/investment team, and also thousands of very smart people eager to contribute. With such a strong structure in place, we think we are ready to take on a bigger challenge, in a much bigger pond, and create something bold and spectacular. It’s time for the Meta Army to gear up, up its game, and charge into battle in the “Curve Wars”!

Timeline /

Jan. 4 — Jan. 6 Community Discussion

Jan. 6 — Jan. 9 Voting Period