Time to hunt opportunties when other's are fearful

what to do in CRV REKT times

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We are still early, learning, growing with u guys since january 2023

Following Curve news slideline enjoying the show?

Time to hunt opportunties when other's are fearful

How will this impact DeFi?

Lambro taking u on a journey to find opportunties

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This is a Long Thread - so TLDR

• 1️⃣ Why is Curve so good

• 2️⃣ DEX Dominance Reshuffle

  4 key protocols to keep an eye on

• 3️⃣ Bullish on Iso-lated lending protocol

  Better solution but...?

• 4️⃣ Future of curve, Token Re-Distribution

• 5️⃣ DeFi user behaviour

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1️⃣ Why is Curve so good

Curve started as concentrated swap n futher expanded into volatile pairs

📍Key reason it sucessed

• Product, efficient algo, Passive style LP management

• First few dex that brings trading fee value to user

• Starter of ve tokenomics

• Good narrative on ve-wars, dex value to token holders

• Strong community

📍Curve has a fine balance of

• user (people that use the swap),

• LP farmer (people who prefer passive management)

• Token speculators

• Creating a flywheel of trading vol, good apy + strong community

CRV is the 3rd largest swap w 10-15% total trading vol of DEX

What might happen with TVL & token price getting a hit?

Will Farmings leave crv because of reduced apy or trust towards curve causing a negative flywheel in capturing less trading volume less yield less token support

As a curve believer i do think they can come back from this.

A battle test ecosystem is a BETTER ecosystem.

But as a profit maximalist n CT shit poster there are

▶️ 4 DEX u should look at

▶️ Lending protocol investment..?

▶️ Change of habit & over all DeFi sentiment

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2️⃣ DEX Dominance Reshuffle

There are 5 protocols i think its worth looking at as CRV might lose TVL

@Uniswap

@Balancer

@mavprotocol

@GMX_IO v2 (yes gmx)

First lets explore what makes a difference in DEX

rading Vol & Fees are key metrics of DEX

▶️ Tech

Algo efficiency for lowest slippage n best price

Character of LP e.g. curve vs uniswap passive vs active LP management

▶️ Integration

Dex trade routing, crosschain

▶️ Tokenomics incentive

ponzi/incentive to to build LP

▶️ DEX USP

e.g.

Go-to-dex of a chain, exclusive listing

▶️ How does token capture value

Hopium gov token

share fee? yield boosting etc

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Catalyst on @Uniswap

assume TVL & trading vol will leak into other DEX, uniswap will be the best capture both TVL n trading vol

Good:

• Efficienct concerntrated liquidity to capture trading vol

• First to market advantage, brand + go to swap

• Trust worthy smart contract

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Catalyst on @Balancer

Curve's LP character attract passive LP farmers like me

There is a demand in the market for this type of LP, here comes balancer which provide similar LP model

However current trading volume is less than 5% of the total Dex volume

No expert in this but imagine its because algo efficiency in doesnt attract trading vol + LP hence low yield.

At least im not farming yet

keen to hear @defi_naly thoughts on this

But wait there's more!

Their concentrated liquidity "E-CLPs" pools are rolling out n expanding to different chains, will this improve their efficiency attracting trading vol?

will the fall of CRV give them a window to capture more of the DEX market share?

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Surprise on @mavprotocol

mav is a amm with LP management can read more in my previous post

to my surprise they have already became the 4th DEX by volume !?

Not 100% sure what contributed towards it's high trading vol maybe is auto active LP management,

worth keeping eye on

Good to note that we are in early stage of low circulating supply.

Might be a good short/mid term trade or farming before big emission start to kick in

Given if the trading volume picks up + its bigger than its emissioin

however speculative narrative wise not sure is this sexy

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GMX v2

Please take this with a grain of salt as likely im bias towards gmx but

hear me out.

GMX swap trading volume is already 15th at 15m ish per day with just BTC, ETH n Stables.

with GMX v2 coming more asset will/can be listed, imagine the impact might do to trading vol

However GMX V2 been in works for a while lol not sure will be quick enough to capture this TVL n trading vol leak from curve

feel free to check out my threads on GMX v2 related topics!

https://twitter.com/2lambro/status/1659392685579591682

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3️⃣ Bullish on Iso-lated lending protocol

Better solution but...?

CRV as collateral has highlight the problem in a share pool lending protocol design

Isolated lending pool by tiers like @eulerfinance , by asset like @SiloFinance or even by strategy like @AlpacaFinance

The shared pool design greatly limits the asset type being listed

+ making apy doesnt justify risk

However lending protocol tokens haven't been overall mcap n fdv aren't that high, please think wisely before aping

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5️⃣ DeFi user behaviour

@CurveFinance will recover from this, i believe in that.

However this have highlighted a major problem

As stable or established like crv, we still need to becareful founders/team using their majority of their token as collateral

https://twitter.com/DefiIgnas/status/1686323974563909632

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I don't want to compare crv with sol n ftt, but are they on the similar story on some level?

cash out via loan? it's almost better to just slowly sell ur tokens but not take a large loan betting on ur token price up only

Secondly, what impact will all these OTC deals have towards centralisation or token price next year?

im not educated to have thoughts on this yet, but keen to chat more if anyone is interest. DM me or find me in "MediumRare 🧑‍🍳🥩🤌" chat or just comment below

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4️⃣ DeFi user behaviour

I actually pulled out most of positions on DeFi other than some high risk play.

Is 10-20% apy really worth smart contract risk?

i rather ape small size farming in a 1000% risky farm short term

or

just take happy delta n buy a shxtcoin at small size

than to farm a year hoping no contract risk for 10% apy in a year sound dumb right now

i have to say i lost a bit of faith in smart contract in DeFi

n this is me as a DeFi Maxi

What about others?

This might sounds like a sad ending but every industry has growing pain.

I still do believe defi has a future n i am staying

🫡This is the frontier. It's not for everyone but im glad you're with us on this journey

*quote

@BanklessHQ

Still give me the chills everytime

To do

• Check change trading volume & tvl of DEX space & protocl above

• Check Stablecoin in/out flow to see do how big of an impact it has on overall crypto

• Join "MediumRare 🧑‍🍳🥩🤌" Chat