(1/8) Why are Defi projects willing to pay you for your @ConvexFinance $CVX voting power? This thread is an introduction to ecosystem and economics for earning yield with your $CVX.

Whether you were recently introduced to $CVX via traders like @CredibleCrypto and want to understand the ecosystem a little better, or are a long-time $CVX holder who needs a reminder, this thread is for you!

This thread covers:
* Intro to the roles of the major players
* Overview of the ecosystem mechanics (with infographic)
* Real-life example of a Defi project paying for your vote (using the new @yieldbasis protocol)
* Calculating your APR
* Summary of steps for "signing up"
* Links to official documentation and references

Note: This thread is not a deep dive of @ConvexFinance, $CVX, or it's many services. This guide is an overview of the specific mechanism of earning yield from Defi projects willing to pay for your Convex voting power. This thread an overview and does not cover all relevant nuances, but links are provided to official documentation. Not financial advice. (2/8) So why do Defi projects pay for your Convex voting power?

In short, because you can vote for Curve to allocate more rewards to their project's liquidity pool. This encourages more deposits to their pool, deepening its liquidity, and thereby enhancing their project's effectiveness and success.

Let's take a quick look at the role the major players take in this this ecosystem:

First, various Defi projects establish or use "liquidity pools" on exchanges like Curve so their protocol can work effectively.

@CurveFinance is a decentralized exchange (DEX) that distributes incentives to liquidity providers for these pools (determined via a governance vote).

@ConvexFinance controls over 50% of Curve's governance power and passes their Curve incentive votes to those with Convex governance power ($vlCVX holders).

@VotiumProtocol is a marketplace where Defi projects pay Convex voters in exchange for voting for their Curve liquidity pool.

Llama Airforce is a service that helps users manage the incentives they earn through Votium (make your life easier and boost yields).

🚨 1 / @OlympusDAO's entire balance of 869,748.2 vote-locked $CVX was just "withdrawn" -- actually kicked by a Bounty Hunter.

Their last 3 "withdrawals" were all actually kicks due to bounty claims.

Olympus is now the 2nd largest $CVX bounty "victim" behind Terra. @OlympusDAO 2 / Here are the 3 bounty claims made against @OlympusDAO, with the most recent resulting in a bounty of 8,697.48 $CVX.

dune.com/defishaka/cvx-…

1 / A few days ago I posted about bounty hunters making a killing claiming bounties on idle vote-locked $CVX. How much are they making and how pervasive is this practice? I created a @DuneAnalytics dashboard to fine out. A thread.

https://twitter.com/DefiShaka/status/1606131537472155650

@DuneAnalytics 2 / Here are the CVX Bounty Hunter stats:
* 2,549 bounties claimed
* 59,269.78 total $CVX claimed
* 22 unique Bounty Hunters (by address)
* 2,110 unique "victims" (by address)

1 / Yesterday the last of Terra’s formerly 2.3M vote-locked $CVX was “kicked” from @ConvexFinance's locking contract as part of the idle CVX bounty program.
I investigated & discovered Bounty Hunters are roving the contract to claim $CVX bounties & making a killing doing it!🧵 @ConvexFinance 2 / First, all 9 of Terra's "withdrawals" were not initiated by Terra, but were the result of bounty calls!

@DefiMoon comments on the possible implications for Terra:

https://twitter.com/DefiMoon/status/1606028595289169921?s=20&t=PGicItdiLBXD7LOJCm2Frw

🚨 Terra just withdrew their last remaining vote-locked $CVX, from a previous maximum balance of 2.3M.

They have been withdrawing since August as each batch unlocked. The last 567K $vlCVX was just withdrawn.

All 2.3M $CVX is sitting in their wallet...what will they do?! 🚨 2 / View Terra's full $vlCVX history on my @DuneAnalytics dashboard:
dune.com/defishaka/defi…

1 / My final post-mortem of how the top 100 addresses with $vlCVX that unlocked on 6/30 deployed their $CVX after the unlock. A massive 81% of the $CVX was relocked while only about 4% was sold or taken off chain. Most of the rest was deployed to other yield options. A thread. 2 / $CVX from the top 100 unlockers was allocated as follows (by #CVX):
81% - Relock
3.5% - Dump for stables
3.4% - Stake on @ConvexFinance
2.3% - Deposit on @AaveAave
2.2% - Deposit in @BadgerDAO $bveCVX
2.1% - Sitting in wallet
2.0% - Pending
1.5% - Deposit in @0xC_Lever

1 / I just created my first @DuneAnalytics dashboard! View the entire vote-locked $CVX lock, relock, and withdrawal history of any address. I haven't seen anything equivalent in the dashboards I've been using to track The CVX Unlockening. SQL first-timer!

dune.com/defishaka/vlcv… @DuneAnalytics 2 / For example, what has one of Tetranode's addresses been up to? Locked 1M $CVX in May, withdrew 6/30, and locked again 7/4.