2/
If you don't know about the Curve Wars going on in #DeFi, I recommend reading about them.
It's a big deal. And can be very lucrative if you find the right way to play it.
I've also linked some recommended reading resources at the end of this thread.
If you don't know about the Curve Wars going on in #DeFi, I recommend reading about them.
It's a big deal. And can be very lucrative if you find the right way to play it.
I've also linked some recommended reading resources at the end of this thread.
3/
It sucks to lose $ when swapping one stablecoin for another.
Typically, this happens because of slippage (due to low liquidity).
It sucks to lose $ when swapping one stablecoin for another.
Typically, this happens because of slippage (due to low liquidity).
https://twitter.com/shivsakhuja/status/1487715975285788672?s=20
4/
@CurveFinance is a DEX that specializes in low-slippage, low-fee stableswaps.
$CRV is the governance token for @CurveFinance.
But it's more than just an ordinary governance token.
@CurveFinance is a DEX that specializes in low-slippage, low-fee stableswaps.
$CRV is the governance token for @CurveFinance.
But it's more than just an ordinary governance token.
5/
The $CRV token is so important that it has spawned several other projects whose sole purpose is to accumulate $CRV through creative methods.
This battle for $CRV is what people in the space call the Curve Wars.
Here's why $CRV is so important... π
The $CRV token is so important that it has spawned several other projects whose sole purpose is to accumulate $CRV through creative methods.
This battle for $CRV is what people in the space call the Curve Wars.
Here's why $CRV is so important... π
6/
When you lock up $CRV for a period of time, you receive $veCRV (vote-escrowed $CRV)
This means you are rewarded with a % of the fees from all trades on @CurveFinance proportional to your $CRV holdings and lockup period.
When you lock up $CRV for a period of time, you receive $veCRV (vote-escrowed $CRV)
This means you are rewarded with a % of the fees from all trades on @CurveFinance proportional to your $CRV holdings and lockup period.
7/
$veCRV holders can vote on which LP the next round of $CRV emissions will be directed towards.
So as a $veCRV holder you can vote for emissions to be directed to the LPs you are participating in.
$veCRV holders can vote on which LP the next round of $CRV emissions will be directed towards.
So as a $veCRV holder you can vote for emissions to be directed to the LPs you are participating in.
8/
Every stablecoin strives for more liquidity.
Deeper liquidity pools means lower slippage, better pegging, more stability and more adoption.
Every stablecoin strives for more liquidity.
Deeper liquidity pools means lower slippage, better pegging, more stability and more adoption.
9/
Projects can also "bribe" $veCRV holders to vote for emissions to be sent to their LPs using their own tokens.
If $veCRV holders vote to direct emissions to a pool containing a project offering a bribe, they receive that project's tokens on top of the $CRV fees.
Projects can also "bribe" $veCRV holders to vote for emissions to be sent to their LPs using their own tokens.
If $veCRV holders vote to direct emissions to a pool containing a project offering a bribe, they receive that project's tokens on top of the $CRV fees.
10/
Enter @ConvexFinance. Convex decided to start accumulating $CRV tokens so that they could direct emissions.
In order to accumulate $CRV, Convex came up with the following model...
Enter @ConvexFinance. Convex decided to start accumulating $CRV tokens so that they could direct emissions.
In order to accumulate $CRV, Convex came up with the following model...
11/
Users can deposit to LPs directly on @ConvexFinance, and earn boosted $CRV rewards + $CVX tokens.
On the backend, Convex is still using @CurveFinance.
Users can also stake $CRV directly on Convex, and receive $cvxCRV instead of $veCRV.
Users can deposit to LPs directly on @ConvexFinance, and earn boosted $CRV rewards + $CVX tokens.
On the backend, Convex is still using @CurveFinance.
Users can also stake $CRV directly on Convex, and receive $cvxCRV instead of $veCRV.
12/
$cvxCRV is liquid (unlike $veCRV).
Which means it can be redeemed for $CRV at any time.
I've mentioned before that I don't love locking up tokens (though $CRV might be an exception to that).
Still, why lock when there is a liquid alternative.
$cvxCRV is liquid (unlike $veCRV).
Which means it can be redeemed for $CRV at any time.
I've mentioned before that I don't love locking up tokens (though $CRV might be an exception to that).
Still, why lock when there is a liquid alternative.
https://twitter.com/shivsakhuja/status/1488659689416003586?s=20
13/
As a large holder of $CRV governance tokens, @ConvexFinance gets to push its weight around to decide where to direct emissions.
But of course, it doesn't end there.
The fight for $CRV has spawned manyΒ other protocols that exist to stack governance tokens.
As a large holder of $CRV governance tokens, @ConvexFinance gets to push its weight around to decide where to direct emissions.
But of course, it doesn't end there.
The fight for $CRV has spawned manyΒ other protocols that exist to stack governance tokens.
14/
These include:
β’ $BTRFLY aka @redactedcartel (βββββ)
β’ $GaaS or @CongruentFi
β’ $BENT or @BENT_Finance
I will explain these more in the future - stay tuned!
These include:
β’ $BTRFLY aka @redactedcartel (βββββ)
β’ $GaaS or @CongruentFi
β’ $BENT or @BENT_Finance
I will explain these more in the future - stay tuned!
15/
If you need more evidence for the value of the $CRV and $CVX, take a look at some of the DAO heavyweights that own $CVX.
Source: daocvx.com (ty to @DeFiDividends)
If you need more evidence for the value of the $CRV and $CVX, take a look at some of the DAO heavyweights that own $CVX.
Source: daocvx.com (ty to @DeFiDividends)
16/
Liquidity is a very valuable commodity in #DeFi, and there are lots of smaller scale battles going on for Liquidity in other corners of the DeFi space.
Keep an π out for more governance projects / veToken models / liquidity wars.. this is likely going to be a big theme.
Liquidity is a very valuable commodity in #DeFi, and there are lots of smaller scale battles going on for Liquidity in other corners of the DeFi space.
Keep an π out for more governance projects / veToken models / liquidity wars.. this is likely going to be a big theme.
17/
Recommended reading to learn more about the $CRV wars π
1. theknower.substack.com/p/the-mythos-oβ¦
Recommended reading to learn more about the $CRV wars π
1. theknower.substack.com/p/the-mythos-oβ¦
18/
2. @blocmatesdotcom on the Curve Wars and @redactedcartel
2. @blocmatesdotcom on the Curve Wars and @redactedcartel
https://twitter.com/blocmatesdotcom/status/1481504397343531009?s=20&t=R2RSElh5qrIeIzBWrlMgWA
20/
How are you playing the Curve Wars? π
How are you playing the Curve Wars? π
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