Curve, "King of War" was born in the spring and fall of DeFi

As a child, I liked "King of War", with Nicolas Cage, and it was the first time that I saw an arms dealer in all truth. In the film, Yuri owns a weapon, relying on her beauty, going through various armies, causing fires and engaging in war. In the case of DeFi also, in the spring, in the fall and in the Warring States, it was a time when all the vassals conquered the land and when the art, at the same time, "King of War" was born to send ammunition. all families. He is our protagonist. Today: Curve.

What is the curve? Why is it called "King of War"?

A student with some understanding of DeFi should be familiar with Curve. It's built into Windows 98 on a legitimate website and has focused on that since its inception.The large AMM fixed income exchange rate is close to zero card.andThe stable advantages are a bridge that connects multiple DeFi applications.Currently, stable profits are the key to the health and growth of any industry, and stable profits are the ball of every business. Therefore, there are an endless number of stability coins on the market. Everyone wants to start a joint venture. And for their own processes or businesses, the facilities are not the same, so they must be interchangeable. Because Dex has always had disappointments, bad exchange rates, and the curve was born after seeing this market.With the special exchange rate curve, the stable exchange rate slippage is directly reduced a hundredfold and is unreliable.This will allow new fixed income securities to enter the market or others will want to trade in fixed income securities, making the curve a viable option.Just as the soldiers in the movie chose Yuri as their weapon armor, the marketing options ultimately made the “War King” twisted in the DeFi world.

Of course, the author alone says that he was the king of innumerable wars. You also have to follow the facts (figures). But before we talk about data, I think we need to briefly understand the meaning of curves: the exchange curves behind them.

Main advantages of curves --- Characteristics of curves

As a DEX, the number of curves supported by AMM is important. Unlike the usual DEX parentheses, the x * y = k parentheses have new patterns:

We will not go into the details of these models here, as you know.This model is for stable coins., the exchange rate in the same exchange pool is close to 1: 1. Another meaning isNot all lakes on the curve have a trading partner, but stable results assigned to the same goal are found in the same lakes.For example, USDT pegged to USD, USDC, BUSD, etc. are all in one pool.

Additionally, the Curve Crypto white paper was updated on June 9 of this year with an update that allows users to roll back without any configuration. The principle of knowledge is that the price curve is not the same, but rather by an internal expression of Exponential Moving Average (EMA).Curve Based on the historical value and recent market price, the starting price is received and the exchange rate changes to create a new price curve to protect the profit of the LP.At the same time, this refinement allows Curve to achieve lower volatility for volatile volumes as well. See the image below for the latest update.

Data source: curves

Does the twisted case carry the title "King of War"?

After a brief understanding of the main advantages of curves, we should move on to the modern topic: curve performance data. If the record is not good, the title is bullshit, only when the record can see the title of 'King of War' attached.

Before we start, it should be clarified that in my opinion the 'stablecoins' that allowed curve trading were similar to foreign currencies. Real Life Retail Forex Dealers (RFEDs) are like real life.

At the same time, we are at leastIn the Ethereum ecosystem, Curve is the most stable exchange., only uniswap has the right to touch the curve if he asks for a candidate. Polkadot and BSC have competitors (Polkadot Balance is a curve endorsed by Curve, and the Curve team is also supporting the project). And since Curve's own business is focused on stable trading, it does not compete directly with other trades, and other trades also cooperate with Curve.So while doing the critical curve analysis here, our main competitors are not just a position in the blockchain industry, but a model for RFED in existing financial markets.. However, it should be noted that Uniswap V3 provides low cost, low running cost, high investment upgrades, so here too Uniswap V3 and Curve are offered separately to accommodate the blockchain method.

How does a curve work from a business point of view?

First, let's take a look at the existing RFED markets. Here we are referring directly to WIKI data. According to a World Bank survey for the World Conference every three years, the average daily volume of the global container market traded at $ 6.6 trillion in April 2019 for:

Cash Transactions, Part 2

1 trillion according to the forward contract

Foreign currency (foreign currency) $ 3.2 trillion

108 billion currency exchange

294 billion for options and other items (options and other items)

At the same time, we have to be careful.Since Curve now only supports stable market gains, when comparing data from all parties, only comparative market products are compared.. Let's first take a look at the size difference between Average Market Volume of Curve and Regular RFED.

Data source: Forex BIS 2019 statistics, compiled by Cryptoyc

Fantastic, of course, a hundred thousand times. However, it should be noted that the USD is dominated by Current Curve Stabilitycoins and EURUR is dominated by Stabilitycoins, so are these two data comparable separately? For ease of comparison, by default all curves on the curve are indexed to USD or EURS including WBTC, WETH, ETH, etc. At the same time, we count the market volume in USD EURS in RFED as daily market volume in USD EURS. Here is the final result:

Data source: Forex BIS 2019 statistics, compiled by Cryptoyc

If you look at the curve and the traditional US EURS RFEDs alone, the difference between the two is 100,000 times. There are still a lot of them left, but the difference is narrower compared to all of them. It also indicates part of the fact that dRFED has shown great promise in the on-curve challenge area, if the cost of developing the challenge can match the traditional budget. But, like I said at the start of the article,Currently, there doesn't appear to be competition in every industry challenging to hit the curve, but RFED oligarchs aren't the only ones in the healthy financial ecosystem.According to Euromoney.com data, if there are too many giants in traditional RFEDs, here are the top 10 RFEDs and their market shares:

Information source: Euromoney.com

We can see that for the giant RFED, their operation is generally equal and without the situation like Curve. So this is a new question. Based on the current volume curve, which of the existing RFEDs is equal? Can you make it to the top 10? First, let's count the specifics of the top 10 traders. I first wanted to know if there was a third party directly with the statistics, but I couldn't find it. So I went to see their financial statements. Foreign exchange transactions were found not to be directly disclosed in their financial records. So here we just take the ratio of each stock based on each company's average daily volume * the average daily volume of total RFED USD EUR and compare it to the volume curve.

Data source: BIS, tables are compiled by cryptoyc.

From the figure above, we can see that the volume of the current curve is only about a third of Bank of America. It is difficult to know which of the existing RFEDs can be assimilated, as not all RFEDs represent data published by the BIS. But from this comparison we can seeCurve is now the big brother of the challenge-space, but it is still young compared to traditional players in the financial markets.Of course, there are many reasons for different big data, such as all large users and all large companies. But what can't we denyThe curve has a lot of room for improvement.. At the same time, it offers a new comparative perspective. If the challenge trade is similar to the international market (because the tokens issued by the challenge contract are similar to the stock market and remain the primary target of the challenge market), the curve is similar to the usual REFD budget. Let's look at the differences between comparing the Challenge Curve and the ratio of traditional currencies REFD in the global economy (assuming the Curve's position in financial markets is not the same). same hedging effect as REFD, but from a practical point of view the curve and REFDs are similar, so a direct comparison here is to show that the space The growth of the curve is huge The concept needs similar data Before watch the market. global commodity market ceiling in April 2019. According to the Deutsche Bank report, 4 It can be seen that the global market value as of March 19 is around US $ 80 trillion (since the latest BIS data date from April 2019)

Data source: Bloomberg Global Market Capitalization 2019

And since Diffie is still in its infancy, the product market has always been based on integration. Therefore, we directly use the new data from June 30 to represent the market value of the challenge. According to data from Coinmarketcap, the total market value of the challenge as of June 30 was $ 73,710,797,526. The market value of Curve is 71,033,064.08. The annual volume of RFED is then taken into account as market value. In this way, we can get the following message.

Data source: Forex BIS 2019 statistics and written by Coinmarketcap, Cryptoyc

even ifThe relationship between Curve and DeFi is, in principle, the relationship between integration and collaboration, and the relationship between REFD and the market is interconnected. . Since this is a non-Forex service, we cannot directly compare the two.However, since the nature of DeFi itself is such as building blocks, division of labor, and collaboration, there is no small consensus that can do a lot, so there is a relationship between these operations. challenge. challenge and REFD and the stock market is a real comparison. However, if you only look at the data, whether it is an actual value or an example, the curve seems to have a lot of room for improvement. But above all, it should not be considered that there is a different layer 2 of Ethereum and Polkadot on the blockchain. Thus, there will always be opponents to the curve in the market, or each chain will have its own resistance. supports. . Today we're only looking at the Ethereum ecosystem, so let's compare the stable trade data from challenge Evergreen, Uniswap V3, and Uniswap. At the same time, we add the data from the exchange medium and compare it with each other for a better understanding of the current measurement of stable results of Uniswap and Curve. The chart below shows the top 5 exchanges with stable market gains in the market.

Source: Nansen, compiled by Cryptoyc

In the above words, we called in all products, the first is the first reliable industry and more all the amounts below. This is certainly not true because it is always shy for many reasons such as anniversation. Return to the theme and view of uniswap stabilized business and curves of stable curricular, the empty doesn't look like we think. However, think that Uniswap is better than this curve, so they are not a stable calling, so many revenue / unstable calls. Uniswap .. So we can't look at all the money, and you have to look at the changes in two stable calls. Therefore, we will look at two tofu trading defaced (for many transactions, we have made the comparison of unimilization more in V3). So we choose curves for 24 hours ago (July 8) (the icon 10)

Data source: Nansen, classified as cryptoyc

Yes, we can preview intuitively.Uniswap supports fewer Stabilitycoin trading partners than Curve. However, if you compare the partners they share, you will find that Uniswap and Curve are second to none.It also indicates, at least, that Uniswap still has a chance to break the wrist with the firm silver curve. However, it is not necessary to just look at the current situation and not think about future improvements. Here, we do not make industry-specific data estimates, but examine the different concepts of the two concepts.

First of all, we know that the curve is very important in the current challenge ecosystem. Most machine guns (eg Longing) and the main source of income for a stable income is Lake Curve who has a new fixed income who wants to enter the tourism challenge. Curve is also the first choice (eg Alchemix, abracadabra) and Curve is currently available in Polygon, xDAI, FANTOM. Uniswap is also a very important consensus in the business of challenge and its business ventures are a forerunner. Once V3 is up and running, users can choose from value options, as well as all the features to increase usage. At the same time, there are many rules that choose Uniswap as the starting platform for token tours, but the goal is to get the platform's own tokens rather stable, and no news from other channels as well. So the two jobs are not really the same. When it comes to stability parts, I personally like Curve.Since the algorithm itself is intentionally stable, I think Curve is still the best RFED to challenge, at least at Ethereum before better algorithms emerge.. Next, let's compare the performance of the two secondary token markets to see what the data looks like.

How does Curve work on CRV tokens?

Curve has announced its own CRV token, but since this article does not repeat the distribution, there are many final reviews and users can submit theirs. From the forum, let's take a look at the data under the Curve and Uniswap tokens first.

Data source: intotheblock, compiled in Cryptoyc

In terms of market value, the CRV is without a doubt the lowest. This is in fact directly linked to the lower cost of CRV. Since the Uni distribution is a third of the CRV distribution and the cost is 10 times that of the CRV, it is important that the market value of the two is very different. Can you see the strange data? it's you againgreat whale. But for this reason, we can also make the assumption. For example, the power of CRV is to encourage users to enter their CRV into a contract to earn money. If so, can most CRVs be guaranteed under the contract? Let's see.

File source: https://etherscan.io/

According to information from the nansen wallet. We cannot ignore the two Binance wallets. It was originally to harvest a lot of green onions. Our place of contract with the highest open interest is the Curve founders pool (unrestricted for 4 years), voting and community funding. In fourth place is Curve Founder # 1, temporarily assigned to the giant third whale. In fifth position is the library investor, released in two years. But the sixth is the real "symbolic millionaire". The next contracts are also part of Curve Lake. Now this distribution is similar to the distribution of the tokens listed in the free form.With Curve going live less than a year ago, more research is needed to see what the token distribution will look like.

The unhelpful results mentioned earlier can also be explained. You can see the price list.

Data source: Coinmaketcap

I can see that the CRV rate is meeting three steps in the list. From the "drink" for fall altes, 21st dacelual has begun to return to one steps, by "2020 poverty" ". On the first step, it is because of the inside and outside. Outside is why easy to understand. At that time, the market is in a long time, and all the market was intended for "Tianwang (dead)" to save all. This job is a king's machine itself. All people always have much hope. It is very advanced in respect. However, it is also a curve of the curve that calculate the success of other applications decided, which is representative of "the management Managing financial management over the year. I also give you the principle of all the income of the year-ending machine. The technology itself tells you "refuses to" daily "refuses to ensure the users. The curve and other income such as other guns are more money. This continued scratches of year and other soft material, and the price of coins is quickly hit one line). This can be seen in this combination. According to the information of the mountain, the relation of the CRV is as follows. It can be obvious that the motor and soften the money every day.

Data source: sand dune analysis

And after 21 years. As all companies enter the livestock market, Curve also passed the cip-14 deal (offering CRV racks to support all buyers and shutting down CRVs) and the value proposition gained momentum. will be back and stable. Even after 519 canye, the value of the currency can be reversed quickly.

Of course, it seems that the capacity of the curve itself cannot be easily explained by looking at the data related to "value". Because only consumers are valued, we encourage you to consider CRV address issues and community issues. Details below:

Data source: Intotheblock & discord & compiled by twitter, CryptoYC

Looking directly at the kernel, CRV seems to fail for all users and new users are added every day. But just like the great whale had said before,Most CRVs are still in a shutdown and have not yet entered the manufacturing industry, and few CRVs are available for commercial use in practice..Also, under the current CRV reward mechanism, this is about supporting users and closing their deal, minimal CRVs in the process.Under these circumstances, the number of new addresses increases by up to 1% per day, in my opinion surprisingly. As a result, the authors are very excited about the future of CRV.

Contents

By comparing the Curve with the conventional RFED, we can see that the Curve has good potential.In the future, if there is no stable currency exchange that can be compared with it, such as the current development challenge,The curve is "only" better than the current link.And if we compare vertically in the challenge fields, Uniswap v3 occurs, but a stable currency trading volume is also part of the curve, but precisely because it requires more expertise due to the overall liquidity itself. , this position is necessary for a professional market maker. . rather than amateurs. As the function of Curve v2 is to help end users know the whole market like escrow, Curve is far from the whole market or the number of markets. It also focuses on stable trading, and Uni itself is often associated with token trading, so the two compete for some, but not perfect competitors.In the short term, Curve is still number one in the industry. But Curve always said layer 2 was on the way, but nowPhase 2 promotions are also slow.. There are a few other chains, but the main 2 are not bent. Whether this will affect the future remains to be seen. There may be a stronger exchange rate than the curves to compare future curves. Everything is not yet known. But, at least for now, no one in the industry can just ride the curve.

Let's talk about CRV value issues. First of all, from a mechanical standpoint, the growth in the value of CRV itself lies in the promise of a secure APY and commission income, not in any other trade currency. With the approval of the CIP-14 strategy (100% of the profits go to the guarantor);It is possible that the value of the token will increase.. “In particular, having gone through a lot of hardships and achievements and forms of financial management, regulators like to choose equally effective 'fixed income' investment strategies in order to maintain stable profit. Meanwhile, the CRV revenue mechanism can meet their needs. . CornThe issue of flexible pool gun systems is also worth listening to.Fortunately, Curve is aware of this problem and is looking for a solution.