Llamaairforce Pounders: Compounding Compared
Llama Airforce’s Pounders compound rewards through vault allocations with different underlying assets, distribution schedules, and fees. Direct deposits and withdrawals do not require Union membership; members can also select Pounders for processed Votium rewards.
Section links
- uCRV
- Vault shares representing cvxCRV staked single-sided on Convex.
- uCVX
- An auto-compounding pxCVX Pounder offered in collaboration with Redacted Protocol. The underlying liquid CVX wrapper carries temporary depeg and custody risks.
- scrvUSD
- Allocations enter Curve’s vanilla scrvUSD vault, which has a 0% yield fee. Union reward-processing fees remain separate.
Reinvestment and Distribution
The uCRV Pounder claims and reinvests earnings into its cvxCRV position. Convex reward weights can vary between CRV plus CVX governance tokens and 3CRV revenue from Curve. Reinvesting profits increases the cvxCRV represented by each uCRV while leaving the holder’s uCRV count unchanged.
The uCVX Pounder converts incentive rewards into additional pxCVX every two weeks. It distributes the resulting pxCVX over the following two weeks. Conversion supplies the assets for that subsequent distribution period; the conversion event does not mark a completed distribution.
uTokens represent shares in their respective Pounders. Their token count and the underlying amount that they represent measure different things. In particular, one uCRV does not necessarily represent one cvxCRV.
Hypothetical uCRV Harvest
An unchanged uCRV balance can represent more cvxCRV after the Pounder reinvests profits.
For this hypothetical harvest, hold the share balance fixed at 82 uCRV. Assume that those shares represent 121.36 cvxCRV before reinvestment and 124.64 cvxCRV afterward.
The represented underlying increases by
124.64 - 121.36 = 3.28
cvxCRV, while the share count stays at 82 uCRV. The unchanged share count therefore does not indicate that compounding failed.
Changing either hypothetical underlying amount changes the calculated increase. The comparison assumes an unchanged share balance and describes token backing, without predicting another harvest or a dollar return.
Fees by Entry Path
Each Pounder has its own fee structure, which the application displays when hovering over its APY figure. The fee breakdown matters separately from the choice to participate in the Union.
The Union’s fee schedule dated 6 December 2024 lists operating gas costs divided evenly among users. It specifies a 2% incoming-reward fee plus a variable fee on yield from airdropped Pounder shares. The scrvUSD allocation exception uses a 4% incoming-reward fee and a 0% yield fee.
Those dated processing terms concern rewards routed through the Union. They do not establish the fees for a direct Pounder deposit, which does not require Union membership.
pxCVX Depeg Fallback
The Pounders documentation describes a worst-case fallback if the pxCVX pool depegs: pxCVX would revert to a standard 16-week CVX lock. That conditional route involves locked CVX, so it does not establish an immediately liquid exit.
The uCVX wrapper exposure remains relevant when choosing a compounding destination, even though joining the Union is optional. Membership and the risks of the selected underlying asset are separate considerations.
· updated