Thread by @0xshub

1) @scribeDAO Post: We summarize amazing long articles that you don't have time to read entirely.

Article: Curve Finance and the veCRV reward meta by Miyuki Eto

Read time: 9 minutes

2) Curve is a multi-chain stablecoin exchange liquidity pool. With current TVL of over $8b, it’s one of the largest DeFi protocols in the space. Curve stablecoin pools provide a low fee, low slippage alternative to swapping stablecoins on centralised or decentralised exchanges.

3) CRV is the governance and utility token for CurveDAO, the decentralized organization running the protocol. Liquidity providers earn CRV tokens as incentives. Currently the CRV token has 3 main uses - voting, staking and boosting. veCRV is a way to incentivise liquidity.

4) Yearn Finance is a decentralized protocol focused on lending aggregation, yield generation, and insurance. It offer 'passive' investing strategies like automating the yield generation, rebalancing process, shifting funds to new opportunities, and socializing transaction costs.

5) Native veCRV cannot be transferred, the only way to obtain it is by staking CRV. Yearn vaults assets are tokenized, and you receive yTokens in return, this token can be traded. So not only can you lock CRV tokens to gain yveCRV, you can also buy yveCRV directly on SushiSwap.

6) Convex offers a similar solution to the one offered by Yearn, but with a few key differences like Convex add liquidity mining with CVX tokens distributed to cvxCRV holders, and the 3CRV rewards are not added back into the vault, they are distributed directly to cvxCRV holders.

7) Convex Finance has seen massive growth in their TVL since launch, with currently over $3b locked in the protocol, and over $55m locked in their cvxCRV vault. These are just 2 of the projects using the veCRV vaults to provide yield to depositors, there are others like StakeDAO.

8) yvBOOST’s decision to purchase more CRV with the rewards and locking them back in the pool has had the effect of de-pegging yvBOOST tokens. Whereas Convex’s decision to distribute the 3CRV rewards to holders has meant cvxCRV tokens have maintained their peg with CRV closely.

9) Earlier this month Curve Finance announced the release of Curve v2, which is an AMM for volatile assets, similar to Uniswap v3 in ways. This rightfully deserves its own article, as it is quite complex, and has lots of potential implications for the AMM space.

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