People are learning about maximising stablecoin returns through #Curve.
In this thread we will explore what the #CurveWars are, and how you can maximise your returns through $CVX and $CRV.
In particular, dropping some alpha on the $BTRFLY Cartel DAO.
/THREAD 🧵
In this thread we will explore what the #CurveWars are, and how you can maximise your returns through $CVX and $CRV.
In particular, dropping some alpha on the $BTRFLY Cartel DAO.
/THREAD 🧵
1. Understanding Curve Is Central
This thread will not be about explaining $Curve.
This is a good thread by @JackNiewold to read if you don't already have an understanding of #Curve.
This thread will not be about explaining $Curve.
This is a good thread by @JackNiewold to read if you don't already have an understanding of #Curve.
https://twitter.com/JackNiewold/status/1476334616797749248?s=20
2. [Redacted] Cartel is an $OHM fork.
$BTRFLY is the rebase governance token. The treasury of Redacted DAO bonds $CRV and $CVX to mint $BTRFLY.
It is an Olympus Fork entering curve wars. Building on one of the most upcoming principles of DeFi.
$BTRFLY is the rebase governance token. The treasury of Redacted DAO bonds $CRV and $CVX to mint $BTRFLY.
It is an Olympus Fork entering curve wars. Building on one of the most upcoming principles of DeFi.
3. Don't let that fool you
[Redacted] is allowing you to bond specific tokens for discountEd $BTRFLY.
The profit earned is shared with all xBTRFLY and thus a high APY.
Currently, there are three options to bond: $CRV, $CVX, and $BTRFLY.
[Redacted] is allowing you to bond specific tokens for discountEd $BTRFLY.
The profit earned is shared with all xBTRFLY and thus a high APY.
Currently, there are three options to bond: $CRV, $CVX, and $BTRFLY.
4. Problems
There is no such problem that [Redacted] are aiming to solve.
They aim to improve Capital Efficiency.
They want to become a "L4" layer on Curve.
We will break down simply how.
There is no such problem that [Redacted] are aiming to solve.
They aim to improve Capital Efficiency.
They want to become a "L4" layer on Curve.
We will break down simply how.
5. Capital Efficiency
Capital efficiency is the least amount of invested capital to drive the maximum equity return.
This can be expressed in a simple ratio:
Exit Valuation ÷ Total Capital Raised.
Capital efficiency is the least amount of invested capital to drive the maximum equity return.
This can be expressed in a simple ratio:
Exit Valuation ÷ Total Capital Raised.
6. Terminology to be aware of
veCRV stands for vote-escrowed CRV, it is simply CRV locked for a period of time.
The longer you lock CRV for, the more veCRV you receive.
In return you gain voting power, boost CRV rewards and receive trading fees.
veCRV stands for vote-escrowed CRV, it is simply CRV locked for a period of time.
The longer you lock CRV for, the more veCRV you receive.
In return you gain voting power, boost CRV rewards and receive trading fees.
7. veCRV weight voting process
With enough tokens in the treasure, $BTRFLY has the potential to become a veCRV "meta-token".
[Redacted] has the potential to calibrate the veCRV vote share by accumulating CRV/CVX into its treasury.
Which will bring greater capital efficiency.
With enough tokens in the treasure, $BTRFLY has the potential to become a veCRV "meta-token".
[Redacted] has the potential to calibrate the veCRV vote share by accumulating CRV/CVX into its treasury.
Which will bring greater capital efficiency.
8. A vote pricing machine (ve-aaS)
$BTRFLY has the potential to become an unpegged liquid substitute for veCRV.
75% of their $CVX has gone to locked $vlCVX which will earn bribes from those voting.
All whilst adding liqudity to the cvxCRV"CRV pool to heelp ensure the 1:1 peg.
$BTRFLY has the potential to become an unpegged liquid substitute for veCRV.
75% of their $CVX has gone to locked $vlCVX which will earn bribes from those voting.
All whilst adding liqudity to the cvxCRV"CRV pool to heelp ensure the 1:1 peg.
9. Important votes
$BTRFLY can effectively become $veCRV circulating supply.
Essentially being buyable votes.
From the perspective of the vote buyer:
-Not every vote counts the most
-Vote that decides outcome is the best
-Often a margin of error (overbought votes)
$BTRFLY can effectively become $veCRV circulating supply.
Essentially being buyable votes.
From the perspective of the vote buyer:
-Not every vote counts the most
-Vote that decides outcome is the best
-Often a margin of error (overbought votes)
10. Why do votes matter?
This translates into liquidity for $BTRFLY.
Excess from such competitions increase $BTRFLY value.
Think. More $CRV/ $CVX into treasury as yield.
More votes controlled by the treasury.
Flywheel effect as projects bribe with LP rather than governance.
This translates into liquidity for $BTRFLY.
Excess from such competitions increase $BTRFLY value.
Think. More $CRV/ $CVX into treasury as yield.
More votes controlled by the treasury.
Flywheel effect as projects bribe with LP rather than governance.
11. DeFi Governance
With further introduction of gauge operated protocols like $FRAX.
The flywheel is further reinforced with DeFi governance rather than single protocol governance manifesting a black hold of value.
[Redacted] treasury becomes a commodity at this point.
With further introduction of gauge operated protocols like $FRAX.
The flywheel is further reinforced with DeFi governance rather than single protocol governance manifesting a black hold of value.
[Redacted] treasury becomes a commodity at this point.
12. Risks
As with all governance tokens.
Given enough time, if the product is unable to compete in terms of real utility, take $CRV- it is unable to be relatively capital efficient.
This means, vote pricing for such tokens would be useless.
As with all governance tokens.
Given enough time, if the product is unable to compete in terms of real utility, take $CRV- it is unable to be relatively capital efficient.
This means, vote pricing for such tokens would be useless.
13. Predictions
$CVX (Convex) will most likely continue to dominate the Curve wars for the foreseeable future, in fact it seems as though [REDACTED] can only accelerate their dominance.
As $BTRFLY succeeds so will $CVX inevitably.
$CVX (Convex) will most likely continue to dominate the Curve wars for the foreseeable future, in fact it seems as though [REDACTED] can only accelerate their dominance.
As $BTRFLY succeeds so will $CVX inevitably.
14. Unique Point of View
Right now in the DeFi world, we’re testing the theory that code can be forked but POL can’t, making for a pretty good moat.
However, if claim on a platform’s POL is not priced correctly or if its contents are not made accessible.
It will not work too.
Right now in the DeFi world, we’re testing the theory that code can be forked but POL can’t, making for a pretty good moat.
However, if claim on a platform’s POL is not priced correctly or if its contents are not made accessible.
It will not work too.
15. Specific Aims (Part 1)
They take a long-term view on the future prospects of Curve and increased adoption of CRV.
They are firmly against farming and dumping, as it results in volatility and forced selling in the market.
They take a long-term view on the future prospects of Curve and increased adoption of CRV.
They are firmly against farming and dumping, as it results in volatility and forced selling in the market.
16. Specific Aims (Part 2)
They will set a record of good faith in the Curve ecosystem demonstrating where they will utilize the accumulated liquidity.
They will only use strategies that provide an additional level of utility for CRV/CVX holders and make the ecosystem stronger.
They will set a record of good faith in the Curve ecosystem demonstrating where they will utilize the accumulated liquidity.
They will only use strategies that provide an additional level of utility for CRV/CVX holders and make the ecosystem stronger.
17. Current Plans
[Redacted] in true DAO will fashion the mission and vision by community proposals written in their governance portal.
When a proposal is made the author will be required to stake a chosen amount of BTRFLY
Similarly to dispute, must match the amount staked.
[Redacted] in true DAO will fashion the mission and vision by community proposals written in their governance portal.
When a proposal is made the author will be required to stake a chosen amount of BTRFLY
Similarly to dispute, must match the amount staked.
18. Internal Departments
From a yield generation perspective the strategies employed enable [REDACTED] to accumulate governance tokens in the treasury.
The internal policy department will be leading research into most efficient utilizations of bonded assets.
From a yield generation perspective the strategies employed enable [REDACTED] to accumulate governance tokens in the treasury.
The internal policy department will be leading research into most efficient utilizations of bonded assets.
19. The $BTRFLY effect
When users invest in governance tokens they will naturally be seeking the highest yield for the risk taken.
When interacting with [REDACTED], they will bond their tokens and will receive an equivalent amount of discounted $BTRFLY.
Decreasing Circ Supply.
When users invest in governance tokens they will naturally be seeking the highest yield for the risk taken.
When interacting with [REDACTED], they will bond their tokens and will receive an equivalent amount of discounted $BTRFLY.
Decreasing Circ Supply.
20. Security of Assets
To investors, this is important to no extent.
The code used is an Olympus fork which is audited and has been in place for an extensive period.
They are employing a 4 of 7 multisig to guard the DAO and the treasury, which is an industry standard.
To investors, this is important to no extent.
The code used is an Olympus fork which is audited and has been in place for an extensive period.
They are employing a 4 of 7 multisig to guard the DAO and the treasury, which is an industry standard.
21. 4 Phase Rollout Roadmap
Phase:
One-
Predetermined parameter launch focused on bootstrapping the treasury with core reserve assets.
Two-
TL;DR - Public, permissionless, DAO-governed launch of the $BTRFLY token focused on purchasing back the entire LP position.
Phase:
One-
Predetermined parameter launch focused on bootstrapping the treasury with core reserve assets.
Two-
TL;DR - Public, permissionless, DAO-governed launch of the $BTRFLY token focused on purchasing back the entire LP position.
22. Where are we?
Phase 3:
Currently in Operation Holly Blue.
Further insights has been linked below:
redacted-cartel.gitbook.io/redacted/4-pha…
Phase 3:
Currently in Operation Holly Blue.
Further insights has been linked below:
redacted-cartel.gitbook.io/redacted/4-pha…
23. The Last Stage: Orange Tip
Migrate codebase to an Olympus V2 model. Push all decision making from off-chain to on-chain governance.
Migrate codebase to an Olympus V2 model. Push all decision making from off-chain to on-chain governance.
24. Bond Pricing
The price of $BTRFLY will follow the concept of a Dutch auction.
The discount increases if there is a lack of demand for $BTRFLY.
As soon as a purchase is made, the price will increase dramatically, and will proceed to slowly decrease till another buyer.
The price of $BTRFLY will follow the concept of a Dutch auction.
The discount increases if there is a lack of demand for $BTRFLY.
As soon as a purchase is made, the price will increase dramatically, and will proceed to slowly decrease till another buyer.
25. Staking
After purchasing $BTRFLY, the token can be staked to receive staking rewards in the form of xBTRFLY.
When staking, the BTRFLY token will be locked and an equivalent amount of xBTRFLY will be issued to the staker.
When unstaked, equivalent BTRFLY will be returned.
After purchasing $BTRFLY, the token can be staked to receive staking rewards in the form of xBTRFLY.
When staking, the BTRFLY token will be locked and an equivalent amount of xBTRFLY will be issued to the staker.
When unstaked, equivalent BTRFLY will be returned.
26. Fees
There are no fees charged on the protocol, rather the protocol generates revenue from selling BTRFLY tokens and keeping a portion of the yield produced.
There are no fees charged on the protocol, rather the protocol generates revenue from selling BTRFLY tokens and keeping a portion of the yield produced.
Here are some links to useful resources I found:
redacted-cartel.gitbook.io/redacted/welco…
resources.curve.fi/faq/vote-locki…
blocmates.com/blogmates/what…
redacted-cartel.gitbook.io/redacted/welco…
resources.curve.fi/faq/vote-locki…
blocmates.com/blogmates/what…
I'd also like to mention useful sources of information:
@JackNiewold
@blocmatesdotcom
@SmallCapScience
@noahseidman
@takegreenpill
And many more that won't fit in here.
@JackNiewold
@blocmatesdotcom
@SmallCapScience
@noahseidman
@takegreenpill
And many more that won't fit in here.
If you want to learn more about the fundamental analysis about DeFi and altcoins, you'd probably like my Medium, check it out below.
And for more tweet threads like this follow me:
@Crypto8Fi
medium.com/@crypto8fi
And for more tweet threads like this follow me:
@Crypto8Fi
medium.com/@crypto8fi
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