Thread by @WormholeOracle

I know I shouldn't, but I come bearing alpha on the new Curve strategy, given the release of the @iearnfinance yveCRV vault 🦍
👇

I just can't help myself, you know, you spend so much time getting into the wonderful mechanics of the Curve incentive structure and 🧨💥🤯 New Paradigm...

Here's my last thread on the basic idea:

https://twitter.com/WormholeOracle/status/1325515580808462337?s=20

I love governance. That prob puts me in the minority but I love the discussions, the proposals, enacting change, coming up with crazy ideas that make ppl wonder what you're smoking. So, of course, I love accumulating $veCRV

By contrast, yveCRV will VERY likely require forfeiture of governance rights. This is an unsettled issue but i highly recommend you follow this discussion on who. gets. the vote. I predict this will have HUGE repercussions for yEarn down the line:
gov.yearn.finance/t/establish-wh…

Now my dilemma. yveCRV offers
1. Better APY than veCRV
2. It is (well, has the potential to be) readily traded

But I likely give up my voting rights to yEarn. Wat do?

I have to ask myself "Do I like money more or do I like governance more?"

Now, there is one primary caveat with simply following the money (well, two if you count exposure to yEarn risk)

I am also a Curve LP. As are you probably, if you are reading still. I need my 2.5x boosties. So if I stay on Curve, I need to have 𝘴𝘰𝘮𝘦 amount of veCRV

So for now, my plan is keep LP-ing on Curve, keep earning that 2.5x boosted CRV, and stick it right into the yveCRV vault from now on.

Right now that gives me a cool 1.571x return over the vanilla veCRV

The best part is, whenever I find my veCRV has diluted and I'm not getting those tasty boosties anymore, I can sell my yveCRV for CRV and lock them as veCRV. Weird, I know. But that's the world we live in now, gotta adapt

The jury is still out on how the yveCRV market will look. We know something- yveCRV cannot be priced higher than CRV. If it is, there's an arb opportunity to deposit into the yveCRV vault and sell for CRV back down to 1:1

Will yveCRV be priced LOWER than CRV, I wonder? 🤔Maybe someone with a bigger brain can chime in here. If you're locked into your yveCRV position, maybe the market will require a premium to exit. Maybe yEarn sucks up all the CRV on the market and it becomes very difficult to exit

It will be exciting to see how the yveCRV market develops. If it can hold a peg to CRV, I'll be pushing for a yveCRV-CRV Curve pool. As PilotVietnam says, it's Curve inception!

My macro prediction on this emergent relationship between Curve and liquidity mining orgs like @iearnfinance is that, while it's possible for a small fry like me to influence governance in some way right now, eventually it will only be giants calling the shots

A bit like how early Bitcoin mining was this grassroots community mining on a laptop, and now you have these behemoth mining companies.

Sooner or later us little guys are going to be squeezed out. While it's a little saddening to think about, that's just reality

The only thing I can do when faced with an uncomfortable truth is to embrace it. I am advocating for Curve to open its doors to more orgs that can compete with yEarn. It's a symbiotic partnership, but it needs competition before this becomes a monopoly.

yveCRV is too strong. I can't be the only one reevaluating my strategy now. It's only a matter of time before yveCRV becomes a black hole that sucks in all the CRV, generating enormous voting influence for yEarn.

Good luck and many gains out there, fellow fishies