A Brief Timeline of the Curved Empire: Investing Doesn't Sleep

instructions

Curve.fi - The king of TVL in the defi world, Curve.fi is not a complex defi product in terms of features, but the ecosystem provided by Curve.fi is scattered confused and rooted, affecting the whole world Defi with immense power. This article takes a look at some of the background, outlines Curve.fi's business model, and does a self-assessment. In the future, Curve.fi will be the base of Defi like Uniswap, Maker, AAVE and it is a project that every Defi player must understand deeply.

Pricing starts at Curve.fi

For the large-scale stablecoin market, Curve has focused on the large-scale stable AMM exchange market since its inception.

Stablecoin trading is the best scenario for mining liquidity in the AMM sector. The biggest problem with the traditional AMM process for service providers is the steady decline, in short, the cost of both in AMM is stable, and the product market size is the most suitable for AMM cash mining.

A truly influential intermediary bank that offers stable payouts that can almost always match decentralized idealistic crypto heroes. I don't want to continue with the upgrade interfering with account security here, but the point is that Curve.fi provides a stable dev site. Actually. Take the time to create an event for your project. As the bridge of this stablecoin, Curve will become the long-term Defi infrastructure, and the volume market for this stablecoin is the value of Curve.fi.

Advantages and disadvantages of the veCRV mechanism

Introduction to the veCRV mechanism

50% of the conversion cost of the Curve protocol is paid, and the percentage of the cost is equal to the ratio of the veCRV.

vote. The voting power of veCRV is very simple, the voting power is equal to the closing time and the veCRV is reduced in time, this means that the closing time must be adjusted to have the correct voting power sufficient . always.

support mechanism. Boost is a mechanism for accelerating liquidity mining. Without support, the liquid base is only 40%. Only when you have enough veCRVs of a large enough size can you get the support speed. Up to 2.5 times is a linear gain mechanism. A special algorithm can refer to the model in the figure below.

Boost Calculation Formula

Basic Curve Mechanism

Why veCRV changes everything

time -> consensus -> value

The veCRV mechanism was eventually mined in time quenching in Curve.fi: lock position and quantification of lock position value - voting power. In fact, closing the ballot to increase voting power is nothing new, and what makes veCRV so successful? Often working with power steering, users have a direct reason to compete for the CRV. More votes means more revenue, which is the basis of veCRV games. This feature allows both sides to close the center of the CRV almost permanently and maintain the strength of the curve. At the same time, this veCRV also retains the benefits of a stable price by countering the situation of buying more money immediately to vote and selling more after the election.

Issues in veCRV

The Boost mechanism is the basis of the game, but since veCRV itself does not change, the voting rights are limited to the address itself that is engaged in the CRV, and only this location has support. Only CRVs large enough to generate revenue at the same time can achieve optimal recovery. Above all, this mechanism is not the case here. The curve is that every financial provider is still a competitor to the CRV token, so we hope the lp providers understand. This is the basis of the game. They rush to buy CRV locks and vote for their own pools.

If so, the facts still matter. If users consider maximum support because the pre-mining project and early inflation was too fast, the number of CRVs is too large, and too many whales and suppliers with CRVs will end. split in two, and the veCRV mechanism as an aggregation of interactions It officially became a glitch, which also led to the start of the war around the optimization platform that we will explain later.

Multidimensional warfare in the Curve universe

The war across the curve has not stopped since its birth, according to the number of participants, the war was planned in advance and the war began to spread to every corner of Defi.

War of Curve.fi profit platform

In the comments above, we discussed the unreasonable design of the immutable nature of veCRV and the problems of the initial operation that led to the stratification of CRV holders and financial service providers. by Yearn was stunned for a very long time before Convergence. They use their profits in CRV to accelerate revenue, attract customer deposits, and reach 10% of revenue just to get back to the next measurement curve. In order to improve its self-operation, which is one of the most promising income for users.

Julien Bouteloup, key member of Curve.fi, then presented his projects. StakeDAO, the race was announced, and later by the vote of Curve DAO, StakeDAO became the second CRV company after Yearn to receive the Curve Governance Whitelist (SmartWalletWhitelist). ).

Here is a link to Curve's SmartWalletWhitelist. This is a special mechanism. To avoid violations of this policy, Curve has developed this free registration process as veCRV at the contract location may carry the restricted restrictions. So far only Yearn, Stake DAO and Convex are available. Register. The power to clear the names is in the hands of the CRV Core Whale.

The Elders of the Curve Empire, the Ninth Estate

Next up is the current king, Convex. The Convex mechanic is what we need to focus on. Convex tokenizes and embeds voting rights in unmodified veCRVs by permanently converting crvs to cvxCRV using cvxCRV, permanently closing them on assembly, and enforcing voting rights in crvs using new CVX tokens. Configuring cvxCRV for near 1:1 CRV pools to provide a special output provides CRV operators excellent support for integrating their CRVs into Convex.

StakeDAO ultimately decided to support Convex in this war and move the CRV to Convex so that Convex could complete its original design. At the same time, Convex finally won the majority of CRV users and won the final battle of refinement, with vecrv accounting for more than 50%.

The dynamics of Convex complete the solution for the Curve.fi business model. It's not perfect for the author, but it's already a great solution. The authors believe that CRV and CVX are better solutions, but this assumption is only evident in the story. Convex impact far beyond combat capable

Curve.fi vs Stablecoin Volume Uniswap Offensive thiab Defensive Battle

Uniswap V3 also recently offered a 0.01% payout plan. The goal is very clear. Knives represent Curve.fi stable earnings and large trades. However, due to its low revenue, the tvl set is still although unlike the 3CRV pool, trading volume below 1 million kals is already a major threat.

The main focus of the battle for DEX dominance is also the direct market share of the three main assets - the big funds BTC, ETH and 3CRV. Curve.fi's counterattack strategy is very precise and insurmountable. The long-term effect of shanzhai selected the best real-world uniswap combat concept: low AMM resolution for significant advantages and Tricrypto pool calculation of its ETH/BTC/USDT. Is Tricrypto Pool better than the AMM solution? Although it is not yet known, according to the defense concept, it can be said that the current TVL and modern products of Tricrypto V2 are higher than expected, and Tricrypto should be able to do better.

Figure Liquidity lease war

After discussing the battle for platform optimization and the battle for coin trade volume stability, we have come to a bigger battle: the battle of loans for stable positions. The first two wars were like battles for the right to establish the Colosseum, and now it was a battle of warriors.

In the 2020 Defi frenzy, many activities completed the second pool deposit, which became the end of the Defi end of summer. This makes the price of tokens rise out of control and fall due to the mining industry and the sale of large whales, creating significant problems. The parties do not have enough time to establish an agreement on the real value of the project token. Tokens cannot be divided evenly.

Once the bottom line of the CRV exchange rate was agreed upon, the SVEN project discovered that while the veCRV itself could distribute the total exchange rate, sufficient voting power could provide the advantage of a beautiful addition to the project itself. At the same time, the characteristic that the voting rules at the closing time are lower than the next period guarantees an increase in monetary values, and these characteristics become the basis for the price competition of activities.

Convex, the real beginning of the Curve liquidity war, everything heated up to the Curve war. Therefore, we will name some of the mechanisms of convex products.

Convex permanently converts CRV to cvxCRV, separating options and privileges from veCRV. crv becomes the renewal contract via cvxCRV. Compared to before, you get most of your old veCRV earnings (Convex deducts 10% from your CRV earnings), you also get CVX without closing your job, and veCRV voting rights are called vlCVX-lock CVX.

CVX Voting Rules, long-term CVX users can vote until CVX is closed for up to 16 weeks and change voting rules at a specific location, making it easier to use the voting machine.

The mint curve for the CVX will rise with the demand for CRV income, which means that the CVX will complete the contract with the increase in CRV, which means that it stops on its own while controlling the suction of the CRV. Many veCRV voting rules do not directly represent the lower value of CVX.

Algorithme CVX Mint

Although many describe Convex as a puppy nest on the curve, writers like to fix and improve. In particular, after cvxCRV and CVX separated the rights of Crv beneficiaries, Warlord projects could focus on competing for the right to vote on Convex and work to achieve greater benefits for users, but only ordinary users as the results can choose to provide the product easily. You can buy a CRV, convert it to a superior cvxCRV contract and sell your voting rights.

Find out how the army wins the war.

vote, vote, vote! !

From the first veCRV to the next CVX to the next bribe. Warlords means getting more voting rights, and now the key is:

Buy CRV and get the right ticket with unlimited locks

Buy CVX and get the right ticket with a restricted lock

Vote, buy votes from a trader through their own tokens

Finally, the cost of voting rights is what this army is most concerned about. The above model can calculate the cost of each veCRV, and CVX management can exceed the total cost of Crv management. by vlCVX and Convex. The ratio of veCRV votes to a current CVX. So jobs can choose to vote based on price means that, in the long run, as long as there is competition, the prices of CRV and CVX will continue to rise in equivalence.

What needs to be said here are the rich elections **bribe.crv.finance and Votium**. The first is for veCRV holders and the second is for CVX holders. Their existence is very simple and they become a separate voter, collecting the low votes of users and distributing bribe tokens to both parties.

Who's running for curve control?

The military now relies heavily on large-scale algorithmic stability projects, with some derivative and peripheral guerrillas continuing to join in melee attacks.

Information from https://daocvx.com/

FX/frax

Defi's former venture, Frax, finally flourished after years of deep farming and remains the first group of stable projects to maintain a consistent CVX. Frax is arguably the most influential technique in computer reliability right now, and it's very close to Convex, and Convex has opened up a special area for Frax. At the same time, FXS also launched its own veFXS format, and FXS saw very high standards, both in terms of security considerations and in the role of Curve participants.

Spell/Meme

Abracadabra's stability coin, an interest-bearing behavioral stability project that promises to outperform Maker, is MIM. The largest liquid reservoir since the construction of the Convex-MIM/3CRV reservoir was achieved using Convex revenue with the support of its Frog Nation, led by its manager Daniele, and a high APY. MIM is a good example of the use of the Curve in this war.

Is it that

Terra, the dazzling supernova of the Department of Cosmos, brings its own stable native token - UST, and tries to conquer the Earth. It can be seen that Do Kwon has a very good sense of humor, and he and Daniel managed to tie up two items that aren't always secure. Terra's ecological prosperity and advancement has given UST tremendous financial strength to compete for the stablecoin throne. Recent data shows that Convex has started to pick up speed and will buy CVX over 60w in early 2022.

ohms / kho

Om is a non-traditional form of algorithmic stability that cannot provide temporary flows by creating a stable pool of curves, but the relationship between Om and Frax is well known. The Ohm community has long recognized the role of Curve and Convex and has called for increased CVX applications in OIP-43 and increased CVX holdings in the financial industry in preparation for future competitions.

The redacted protocol (BTRFLY) with Ohm Blessing went to war with the Convex-based optimization strategy. Using the Ohm mechanism for more efficient delivery of CRV and CVX helps users make better use of their CRV and CVX income. . They are called Curve L1, Convex is called L2 and they call themselves L3. As many votes as CRV and CVX got, it won a place. However, it is not yet known how many surprises BTRFLY will cause in the future.

There were also many important figures in the war such as **Tokemak, Fei/Tribe, Originprotocol, Dopex, **and many more. Due to space limitations, Liquid War participants don't go into too much detail in this sentence. , and will have the opportunity to join the war, Fang described the lone soldiers.

Will this war affect the future of Defy?

Many battles around the curve only heat up after a few battles. Then we provide update information.

Empire Curve territories would continue and the war would only escalate.

The Curve V2 is likely the key to allowing this weapon to be pushed through the Defi world. Curve v2 is an AMM industry solution for unstable parts, which would be a big event that would change the history of Defi if permission to build the lake factory was opened for free. Involvement in the CRV war will ultimately put all major crypto campaigns in competition, not rigid algorithmic plans. From the perspective of the game, the fight would be completely free if the parties did not join the fight before their opponents to get enough votes, because the competitors can use the Curve to earn more money and win wars. .

And will Uniswap V3 be offered as a future mining solution? We are currently working on a potential mining app for Uniswap V3, what updates might affect the world of Defi if this happens? We will wait and see.

2. Arrow mode five

The standard vee has a significant impact on the whole Defi control panel, and compared to other weak control files of other functions, the veCRV control is the most important problem of the Defii project: allocating money significantly. Many interventions and new tasks are attempted for the veto management organization, including FXS, and veFXS, which they launched, is also beginning to support Frax integration with other Defi. At the same time, it is also a driver and a new development of ve, including ve (3.3) recently requested by AC. The forces fighting in the dark blockchain forest are always subject to change and violence, and the whales at the top of the crypto world will certainly face new governance challenges. The evolution of five species is worth waiting for.

3. Stablecoin Scenario Battle

Stablecoins is ultimately designed to be the anchor of the other industry of Liquidity War only to buy time for the expansion scenario Frax is represented by Frax and basically expands business partners in a wide range of areas such as cross chain and various new business ventures participate in popular projects TempleDAO, Ohm. In addition, there is a group phenomenon that indicates stability. Finally, whoever wins the battle separately can create a competition for our stagnant huge sum of money now.

4. A new battle for derivatives?

With Dopex contract options gaining more attention, the market has shown a lot of interest in derivatives markets that can join this fight. It seems like a new way to stabilize the military for the presidency. The authors will follow in this area in the future.

epilogue

The eternal meaning of Defi is the transformation of the financial system. The members of the Curve ecosystem are all leaders in the development of financial resources, including themselves. We hope this article helps you the most in helping Defi players better understand what a Curverse looks like.