Liquidity Wars of the Curve

Why this war?

Many call the algorithmic stability of coins the holy grail of the DeFi world. Many solid parts also use a variety of processes to make the part more stable. More famous has to be Fei. The Fei protocol requires a maximum control cost (PCV). ), which affected the administration issues of Fei of Ethereum. However, since Fei did not use the status quo, few users want to use Fei, so the process is not hot in the end. From the example of Fei, we can see that in order for a stable solution to be obtained, 1. the problem solving and 2. the implementation scenario must be solved. To solve these two problems, we need the curve here. For short term curves, a fixed exchange, unlike the DEX which uses some products like Uniswap, Curve lists a fixed price for a stable exchange, which is an issue with large penalties. . As shown below,

Comparison of curved curves and Uniswap curves

In other words, a stable currency trade on the Curve platform can accomplish the same amount of trade as long as the pool is deep enough. This way, as long as some X algorithmic stability creates an X / USDC / DAI pool of the curve, the X process stability coins can trade real gold and USDC / DAI, making the anchoring of parts solved. Of course, in this implementation scenario, the location is that the lake is deep enough in the curve. Do you want your pool to be deep enough? Then, when the rewards match the height of the pool, users can invest, and the election of veCRV should increase the benefits of the pool, which makes Curve War. Many sustainable rules increase the cost of Curev pools by 1. purchasing CRV and 2. corrupting veCRV bars. Of course, in addition to the stable process, there are other procedures involved in this war.

members of the armed forces

The first to be introduced were the very popular abracadabra (MIM) and Luna (UST). One of the keys to the success of these two stable projects is the creation of a Curve pool deep enough to be used by MIM and UST. self-sufficient,

Currently, the lake depth between MIM and UST is 3.3 billion and 370 million respectively, so more water can solve the problem of transport and sliding and increase the confidence of users. They can also be exchanged for real money.) Both of these policies attract more commercial products by bribing vCRV holders to increase the weight of their giveaways.

An old job, Yearn has always been a participant. Indeed, his vault also relies on Curve to generate income in order to receive CRV rewards. However, only 10% of CRV income is closed by law and 90% of CRV income is covered by the LP. It also caused Yearn to lose to Convex early on. Yearn changed the status quo by changing the token model to increase holder income and sending all veCRVs to Convex to increase code benefits, but there doesn't seem to be any way to go back.

Frax has always been involved in this war as a piece of algorithmic stability. A brief introduction to the Frax project. Frax is part of the stable part of the algorithm (partial algorithm) that part of the Frax product has been created from the property library. The special way is that if Frax> $ 1, the process reduces inventory and increases turnover, while Frax >

Convex at first glance looks like a machine gun, but in reality it is not that simple. The goal of Convex is to give you control of your back curve by pinning as many CRVs as possible. A unique option is for CRV holders to pledge tokens in Convex and then receive cvxCRV. Here, cvxCRV can be converted to CRV at any time. This means that token holders will not only receive the same CRV rewards as veCRV holders, but will also receive CVX. Support and Convex can be swapped to handle Curve payments. And that's not all. The Convex duplicates the Curve model, users lock the CVX (Convex Governance Token), then the right to vote in the Curve Gaugae (weigh the weight to determine the distribution of the Curve rewards). In other words, controlling the convex curve is like controlling the curve. (From the current CVX / CRV ratio, a dollar of CVX is heavier than the full purchase of CRV.) Here, Convex absorbs the CRV, controlling the distribution of the curve. In fact, CVX lockers have become a management certificate (while FXS was added in the future, CVX lockers can engage the management of two positions at the same time).

Next we need to show Redacted, the token is BTRFLY and we'll call it Butterfly for short. Butterfly is a program that provides voting services (see Vote escrow as service, veaaS). At the appropriate time, it absorbs CRV, CVX and OHM in the national financial sector. Butterfly belongs to the Olympus series and absorbs alternative controls. agent. The coin will gradually increase its controlling power so that Olympus can have an impact on the challenge. The difference between this and Convex is that Butterfly absorbs other legal tokens from the contract. Going forward, some jobs may require bribing BTRFLY contractors in order to receive more rewards in certain contexts.

Now that we have talked about the butterfly, we cannot ignore another player, Olympus, in this war. Olympus DAO was the first entity to use the fund and introduced the concept of Potocol private liquidity (POL). The ultimate vision of the project is to make the OHM an integral part of DeFi's future. Olympus first builds a bank by selling a contract. A way for users to exchange LP Tokens or other valuables for a discounted OHM. This OHM has a release date of 5 days for Receivable V1, 14 days for Receivable V2, and 14 days for Receivable V2. The difference between V1 and V1.V2 is that in version V2, OHM changes from user to contract, and does not need to take into account the size of the py contract and the apy stake. The assets absorbed here would be POL, which means the process does not have to worry about eliminating the income issue at all times. Olympus Pro extends the financial process to other processes, allowing other challenge-systems to better manage water. Olympus Pro gives you the option of providing a service.

When it comes to financial aid, we must not forget the Tokens. The difference between this process and Olympus Pro is that the former uses an industrial process to release water and the latter uses POL, which helps to strengthen the process for water management. . There are two types of people from Tokenak. One is a liquidity provider and the other is a liquidity indicator. To the left of the reactor are the tokens released by the user, and to the right are the tokens released by the liquid information. The number of tokens on the right affects the user's income. The more tokens there are, the more he likes the income. (The tokens on the left side of the reactor are used to create a trading pair, which inevitably results in a loss of independence, and that advantage with the tokens.) Users benefit from the tokens and the tokens vote on where the income can be. used for This can help the new process to complete the cold start solution.

Tokemak reactor

War can always shift away from the control of prize distribution, and managing the tokens in the process requires managing the prize.

New Riam phom: Derivatives

Dopex is an Arbitrium based selection process, and its special feature is the token model (preferably veXYZ, Curve, etc.). Dopex also plans to add Redacted to SSOV (Single Staking Option Vault), which will give users the option to participate in a financial war, coins will be placed in SSOV and later option fees will be calculated. Options with different SSOV rates (European options cannot be traded before expiration). In addition to butterflies, Dopex plans to add cvxFXS to SSOV, indicating that users will have more tools to engage in a future war.

concludes

Battle over the Curve has gone insane as more and more processes enter the battlefield. In fact, it's a challenge to control the distribution of gifts, and the more gifts, the more he likes. The main rules here are Convex, Yearn, Redacted, Olympus, Frax, and Toknak. The battle ranged from Curve to Frax and Tokemak. In addition, with the addition of the Dopex contract option, the weapons of this war are much more. Let's see what the results will be.