Alrighty! Great to have you back. With greater capital efficiency, comes more risk! That said, let's move further out the risk curve and explore the CVX's newer "subsidiaries": Prisma and FX!

**But, are They Really "Subsidiaries"?**
That statement was made in jest, but CVX effectively has a controlling interest.
screenshot taken as of 2024/04/06 from convexfinance.com

**Capital Efficiency**
That's right! I said Capital Efficiency: the ethos behind DeFi that is concurrently beloved, feared, and hated! For purposes of the CVX ecosystem, Capital Efficiency shall mean your ROI within the context of directing emissions.

Let's take a look at the latest epoch, Round 67. Please note that information from Llama Airforce only includes data from Votium, not any other Vote Markets.

We will look at the Efficiency for CRV, Prisma, and FX on Llama Airforce (https://llama.airforce/#/incentives/overview/)

CRV
CRV "Efficiency"

Prisma
Prisma "Efficiency"

FX
(Llama Airforce FX page still under construction, please see manual calculation for FX Efficiency below)

For Round 67, we can determine that it was efficient to provide Voting Incentives for CRV and extremely efficient for Prisma.

It should be noted that, specific to CRV, Protocols may still provide Voting Incentives even if the efficiency dips below $1, due to Rebates and a stream of Frax emissions in the form of $FXS.

As Prisma and FX mature, rebates will also apply.

**Calculating the Efficiency Manually**
Since the FX section of Llama Airforce is still under development, this gives us an opportunity to calculate the efficiency manually. The deposits for Round 67 closed 2024/04/01. The price of FXN on 2024/04/01 was $176.49. An accurate result would use the exact emissions directed within that epoch from 2024/03/18 through 2024/04/01, but for ease of calculation we will use the 14day emissions as of 2024/04/06 as shown in the buycvxcorrect table further down below, which is 1701. Multiply 1701 with $176.49 = $300,209.49.

From the Llama Airforce website, we can see the total deposits to Votium was $53.56k

Therefore, Total Emissions $ Directed within the Epoch / Total $ Deposits = $300,209.49 / $53,560 = $5.61.

The Efficiency for FX was therefore roughly $5.61, a 5x ROI!

Of course, this is just a very basic calculation. For more advanced users, you may want to include any rebates and deposits on other vote markets, etc.

**Why Doesn't Everyone Just Incentivize on Prisma/FX Then?**
That is a good question! We welcome you to dip your toe into the Prisma and FX vote markets! The early bird gets the worm!

There are a few caveats.

Firstly, Prisma emissions are intended to benefit the Prisma Protocol. Therefore, any new pools should be paired with ULTRA or mkUSD, the stablecoins native to the Prisma Protocol. Similarly, if seeking to direct FX emissions, the pool should be paired with fxUSD or rUSD.

Secondly, be cognizant that these are newer protocols and may be subject to more volatility than CRV, which has had the benefit of 4 years of battle testing.

Revisiting buycvxcorrect, the CVX controlled emissions for CRV may have some volatility, but it is generally much less than that of Prisma, for example, which could fluctuate between the ~$367k you see below to $1mm quite easily.

(screenshot taken as of 2024/04/06 from https://buycvxcorrect.netlify.app/)

**Make the Most of your vlCVX**
If you have chosen to own vlCVX, there is no harm in dabbling in Prisma and FXN vote markets with new pools. You should not let that vote power go to waste!
(screenshot to clearly show the three separate Snapshot votes representing the three separate vote markets--dabbling in Prisma and FXN will not affect your primary Curve pool!)

**Prisma "Whitelisting"**
For your pool to be eligible for Prisma emissions, you will need to go through the governance process. We can of course assist you there. Very similar to Curve, you would need to

1. addpool,
2. submit a proposal on Curve forum for the addgauge (if it is a novel concept, if the token has had a gauge previously, then no need), and
3. submit a proposal on the Prisma forum to add receivers.

From there it will go to vote by Curve DAO and Prisma DAO respectively. The Prisma DAO vote will be conducted by a "temperature check" on Snapshot before the votes are executed onchain.

Example Proposal:

https://gov.prismafinance.com/t/pip-021-add-curve-and-convex-receivers-for-paypool-mkusd-pool-to-receive-prisma-rewards/127

**FX Governance**
For your pool to be eligible for FX emissions, you will need to go through the governance process.
1. addpool,
2. submit a proposal on Curve forum for the addgauge (if it is a novel concept; if the token has had a gauge previously, then no need)

From there it will go to vote on Snapshot. In the example below, Alchemix's alUSD has had a gauge previously, therefore did not need to submit a proposal on the Curve forum as the community is already familiar with Alchemix. It went directly to vote on Snapshot.

Example Snapshot Vote of the alUSD/fxUSD addGauge

**Concluding Thoughts**
The **Value Proposition of CVX is its power to direct emissions**. This power is available by locking CVX as vlCVX for a minimum 16 week period.

(screenshot take 2024/04/08 from https://www.convexfinance.com/)

Collectively, we direct ~$2.7mm in emissions per epoch. Since these are my concluding thoughts, I will add some subjective opinion here. **All of these assets, CVX especially, are at rock bottom prices**. Once these assets start repricing, the reflexivity will catch everyone off guard.

If $CRV is $2, we direct $6mm in $CRV emissions per epoch.
If $PRISMA is $1, we direct $1.4mm in $PRISMA emissions per epoch.
If $FXN is $1000, we direct $1.68mm in $FXN emissions per epoch.
If $FXS is $20, we direct $271,184.8 in $FXS emissions per epoch.

That's already $9.35mm in emissions per epoch! And these are my pre-breakout numbers...not even my bull targets.

I think this wraps it up as far as Incentives! Thanks for taking the time!

If you have found this guide helpful, please consider donating to JustJousting who is the author of [buycvxcorrect]https://buycvxcorrect.netlify.app/ and say "hi" to Alunara and Benny of Llama Airforce for making available these easy to use metrics to help us navigate this ecosystem!