$CRV x $SNX cross asset multichain liquidity

Thread on how they solve Impermanent Loss for LPs while also enabling decentralized cross-chain swaps for traders

AMM innovation is heating up & they are competing directly with Bancor & Thorchain for volume on the major pairs
Primer - The idea to use synths to power cross pool swaps originated late last year as a white swan event

Part 1 - Solving Impermanent Loss by offering single asset exposure to LPs

LPs who desire 100% price exposure to their chosen asset are able to provide liquidity to the sBTC or sETH pools on Curve

Their funds float between all assets in the pool based on what trades are made
LPs are essential taking on the risk of both Curve's smart contracts & Synthetix's over-collateralization
in exchange for trading fees of the pool & $CRV rewards

Advantage over Bancor is that deposits do not need to be locked for 100 days to get full protection
The newest addition to Curve's Synthetix powered pools has been $LINK

LPs have been able to provide LINKies & receive between 21.25% - 53.11% APY

Expecting pools for the other major blue chips to pop up soon

Imagine the new demand for $CRV to boost 🌊

Due to fee reclamation on synths, cross pool trades previously had to be split into 2 transactions

This meant @1inchNetwork was unable to tap into this liquidity

SIP120 changes this by allowing cross asset trades to take place in a single transaction

Part 2 - Enabling cross-chain swaps by partnering with @renprotocol

You can currently swap native BTC with sBTC / wBTC on Curve

As synth pools continue to grow, you will be able to trade from any liquid synth pool into mainnet BTC & vise versa

resources.curve.fi/guides/swap-bi…
Now lets extend this further

This system works for any asset that is supported by both Synthetix & Ren

Prime candidates in my eyes are

sZEC / renZEC
sXMR / renXMR
sBNB / renBNB
sBCH / renBCH
sDOGE / renDOGE

Hope to see this vision turn into reality over the next few months
The big advantage I see over Thorchain is that LPs are able to provide liquidity while retaining 100% exposure to the asset of their choice

I have never been a fan of 50/50 LP myself

If you are bullish on a coin - you do not want to constantly sell as price rises

Here's why 👇
Impact for $SNX

Stakers receive fees on all trades that route between Curve pools using synths

I expect an exponential growth in revenue as liquidity grows and aggregators start routing trades through these new pools
Impact for $CRV

veCRV holders receive fees on all trades within or between their pools

$CRV demand will also increase as more non-stablecoin LPs deposit & start locking coins to boost their rewards
Impact for $REN

renVM charges a fee on all cross-chain withdraws & stands to benefit as more people use Curve instead of CEXs for their cross-chain transfers
Impact for #1inch

Ultimately liquidity will remain fragmented between protocols in the near future as AMMs compete to see which design works best

1inch can continue to gain a larger share of DeFi volume by tapping into all liquidity available to provide the best rate to traders

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More from @GatheringGwei

8 Oct 20
S Y N T H E T I X
The infinite liquidity derivatives protocol™

Updated list of the 12 main features that will bring huge fee revenue to $SNX stakers

Welcome to the citadel my friend
1/ As of last month all price feeds are now provided & secured by Chainlink

The list of Synthetic equities & commodities is already very strong

Currently available :
Gold
Silver
Nikkei 225 (Japanese stock index)
FTSE 100 (London stock index)

But this is only the beginning...
With the updated futures price methodology produced alongside the Chainlink team, this will open the door to many other real world assets

sOIL is coming very soon

I also look forward to the endless possibilities of assets
S&P500, TSLA, APPL, Uranium, ect
sips.synthetix.io/sips/sip-62
Read 22 tweets
18 Aug 20
Why is L2 w/ Ethereum superior to sidechains?

Rollup security is inherited from the base chain

Rollup validators can never corrupt the state or steal funds (unlike Sidechains)

It's also far easier to transition from L1<->L2 vs migrating chains

Thread to learn about L2's👇
32min-40min
Good discussion on how users of Rollups & plasma can revert to the base chain in-case of failure or disputes

Good analogy of signing cheques
If you know you have not signed any cheques to move funds, you can be confident funds are redeemable

27min-33min
Aztec founders explaining how they organized the largest trusted setup ignition ceremony with 200 different participants, including Vitalik - Users only have to trust that just 1 participant was honest & destroyed their MPC records

Read 9 tweets
19 Jun 20

Why am i bullish on @synthetix_io exchange
With an emphasis of their upcoming implementation of futures

Synthetix started with a collateralized debt pool to create synthetic assets that track price feeds of real world assets via Chainlink oracles

So far, they have created synthetic tokens for many fiat currencies, gold, silver, btc & the index of the London & Japanese stock exchanges

As a trader, you can convert any synthetic asset to another at the prevailing spot price, with 0% slippage

This is possible as the holders of the synthetic assets are essential trading against the debt pool created by minters

Their job is to hedge the debt created by traders & for their service they receive a share of the fee revenue from the exchange
Read 11 tweets

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