Thread by @CanuckLink

1/ Many have written about the Curve wars & VE-tokenomics. Here, I make the argument the largest growth in value will be in yield boosting dApps, what I call The "VE" Middle Fat Thesis.
#avax $eth $crv $cvx $link #defi $PTP $VTX $ECD #PTPparty canoecapital.substack.com/p/the-ve-fat-m…

2/ VE-tokenomics arose from years of failed attempts to reward liquidity providers (LPs) with native DeFi tokens. While, vote escrow (VE) doesn't solve that, it combines governance, yield boosting and token lock-ups in a single token (delaying the problem).

3/ This model also allows yield boosting protocols like @convexfinance, @vector_fi & @echidna_finance to be built on top. The assumption is usually these L2 dApps will capture less value. In the VE-model I predict they have the highest potential for growth because:

4/1. Provides yield boosting to LPs and revenue share for CRV holders; 2. Protocols can achieve deep liquidity without diluting their tokens; 3. Convex has asymmetric defense; 4. Additional bribes for CVX token holders; & 5. Tokenomics, Convex has lower circulating supply.

5/ With the hype of algo stables, like @terra_money, Convex and Vector have outperformed Curve and Platypus, respectively. Platypus is still early & I expect huge growth from Vector and/or Echidna.

6/ VE-tokenomics has been adopted by other DeFi dApps: @fraxfinance, @YetiFinance, and @traderjoe_xyz. I'm interested to see how it will play out, particularly the #JoeWar with @yieldyak_, @steakhut_fi, @frakvefarmer & @vector_fi

7/Overall, VE is changing tokenomics. There is no doubt kingmakers like Convex are about to built in this space, providing they continue to innovate and benefit users/protocols at the current pace.

8/Special thanks to @SamuelAlpha77 from @alpha_pls for his input. Give their Substack a follow!

For more of my thoughts and perspectives follow my twitter & sign-up for my free Substack here: canoecapital.substack.com