In the last article “DeFi 2.0 has just started, the first “fight” is the field around Curve’s liquidity”, we mentioned that veCrv can be obtained through CVX. And veCrv finally votes for governance to decide which Curve pool will share more CRV as a liquidity reward .
Various new stablecoins began to compete for veCrv for the depth of the pool, striving to attract more liquidity with more rewards.
As a vertical CRV management protocol, CVX releases the liquidity of veCrv. At the same time, because vlCVX locked by CVX has voting governance rights, controlling CVX is equivalent to having vlCVX, and having vlCVX controls veCRV in disguise .
Therefore, CVX has become a battleground for major stablecoin strategists and the core asset of the entire Curve War. Check out some of the other players in the war this time around.
Count the faucet Frax
Everyone should be familiar with Frax, ESD, BAS, the leader of “partially collateralized algorithm stablecoins” after the failure of pure algorithm stablecoins.
We didn’t take it too seriously before. After all, although there is partial mortgage, as the proportion of minting FRAX stablecoin collateral USDC gradually decreases, the proportion of local currency FXS gradually increases, and the risk of the entire system is also gradually increasing . Then, everyone saw that Luna and UST, who were not very reliable, succeeded in ascending the ranks.
Immediately after the Curve War started, everyone found that Frax seems to be able to do it, but where is the strength?
- Forking the CRV gameplay, the introduction of veFXS, lock-up, governance, and acceleration is still a good example.
- The USDC in the treasury of others is not idle. Various DEXs such as AAVE and Compound are making money everywhere. What is the money used for? Buy a lot of good assets, of which the largest (over 50%), guess who it is? vlCVX!
- Cooperate with CVX and become the second vertical management agreement partner of CVX. The first cooperation of CVX is Curve, and the second one is Frax. From now on, veFXS can also release liquidity + centralized governance like veCrv.
The short-lived Mochi
Mochi is a memorable project. Here’s the thing:
Mochi is similar to MKR (MakerDao), except that for MKR, you can only over-collateralize ETH to mint DAI. Mochi can mortgage various ERC20 to mint stable currency USDM, such as Uni, AAVE, Compound, etc.
This is actually not a big problem. The problem is that he can use his governance token Mochi to mortgage to generate USDM. And Mochi is all in the company’s hands. So the dark box operation came.
The company mortgaged a large amount of Mochi, generated a large amount of USDM stable currency, and then went to Curve’s USDM/DAI pool to exchange a large amount of DAI .
Is it time to run away? No, the game is not over yet, because USDM/DAI is an innovative version on Curve, with protection, so the volume is not large, the depth is not enough, and there is not much DAI exchanged, so they continue to operate as follows:
The company used the exchanged DAI to buy a large amount of CVX, mortgaged it into vlCVX, and then exercised its voting rights to increase the emission reward of the USDM pool . As a result, more people came for the liquidity reward of the high reward. In this pool, the fluidity suddenly becomes deeper.
So the company happily used more Mochi to mint more USDM in exchange for more DAI.
- AC couldn’t stand it anymore and reported it directly to Curve.
- Curve Thunder means, centralized decision-making directly closes the USDM pool.
- Then there was a lot of discussion on Twitter.
The reasons for the heated debate are as follows:
1. It’s because the company’s gameplay is really not very authentic, although the shell of other people’s sets is “reasonable bribery”.
2. Curve’s approach is a bit less decentralized. Although DAO retains the right to restore the USDM pool, it still has a monopolistic sense of sight when it closes the pool directly. What do you think of these practices?
If there is any project that can add fuel to the entire Curve War, it is undoubtedly Dpoex, which was originally an Arbitrum – based options project .
The project itself has many good innovations, including the dual-token model, using Uniswap as a pool at the same time, Chainlink for price and volatility, and UMA protocol for synthetic assets . At present, the depth of TVL and ETH options is quite good. Friends who like to play options can go to have a look.
Of course, none of these are really important, or rather, not so important in Curve War. What matters is what Dopex does in the first quarter of 2022 .
What if I say, which side can be pre-bet in Curve War in the future?
- When you can bet on the sudden change of APR of each stablecoin pool;
- When you are sure that your mining pool APR will likely decrease next week, you want to open a “hedging”;
- When you want to leverage your Curve War funds;
- When you want governance rights (veDPX) for some of the above.
These are what DPX will do in the first quarter of 2022, “derivative” the entire Curve War through options, leverage, and ve’s model, like an endless nest of dolls.
Last set of Btrfly
The Btrfly may be the last nesting doll in the entire Curve War. What model are you using? OHM’s (3, 3) probably means that everyone comes to Stake and Bond, no Sell. The simple understanding is that you do not sell, I do not sell, we all have a bright future .
Of course it’s not that simple, as the official fork of OHM, it raised $70 million in CRV at the beginning, CVX and OHM, then threw the money out of the warehouse, CVX deployed $25 million in CVXCRV/CRV For liquidity mining, 30 million CVX goes to Votium (a platform for vlCVX’s “voting bribery”) to take bribes, and the monthly income of these two items alone is 4 million US dollars .
So what is the meaning of Btrfly’s existence?
From an investment point of view, you can understand him as long CRV and CVX , after all, it has a lot of these two assets in its treasury.
From a functional point of view, for those who have CRV and CVX in their hands and are too lazy to vote, it may be a more economically profitable way to exchange Btrfly bonds, so Btrfly has become a governance aggregator that aggregates votes in disguise .
If OHM is liquidity as a service. Btrfly is Voting Efficiency as a Service . Due to space limitations, there is no way to elaborate on each item.
However, I still strongly recommend that you collect more information by yourself. Whether you support it or not, you should clarify the mechanism of these projects. After all, this is the real masterpiece of DeFi 2.0. This also means that liquidity is getting more and more attention. After all, the most important thing about financial assets is this.
When it comes to liquidity, Tokemak is also worth paying attention to. Tokemak has to take up a whole article to explain itself clearly , so it is not listed here, but its importance is more than the above.
The next stage of Curve War is Liquidity War, and the C position of Liquidity is not Curve, but Tokemak .
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-representative-work-of-defi-2-0-may-be-among-the-major-players-in-curve-war/
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