Thread by @stung_eth

A pricing analysis of @ConicFinance , $CNC and its place in the Curve Wars and bribing market 📊

(TLDR: Expect a 584.23% ROI)

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For those who aren't aware of @ConicFinance , it's a protocol launching soon that introduces Omnipools built on top of Convex, that diversify your exposure to Curve Pools by depositing a single asset (e.g. USDC).

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A core part of Conic is their governance token #CNC (currently live and tradable),
which will be used to vote on the distribution of the Omnipool assets between Curve Pools.

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As part of the Curve Wars, protocols such as @fraxfinance , @AlchemixFi , @JPEGd_69 and many more have been accumulating $CVX to use to vote for $CRV emissions to their pools in the hope of attracting liquidity for their tokens.

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daocvx.com/leaderboard/

To get an APR of 10% to attract $100 mil of liquidity to a pool, a protocol would need to purchase and use $20.83 mil worth of $CVX.

Details in this thread:


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So how would this look with $CNC? Let's say that Conic is able to attract 5% of the TVL of Convex (a conservative estimate), as it exposes users to the same pools, but they can also earn $CNC rewards on top of the $CRV & $CVX rewards.

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To vote to direct $100 mil of liquidity to a pool, a protocol would need 874 mil vlCNC, which at the current market price is only $3.6 mil.

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Meaning that attracting liquidity with $CNC is 5.84x as effective as with $CVX! Or eventually, that once the Omnipools launch, and voting starts, the price of $CVX would appreciate 584.23% to $23.84 🚀

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