Time to hunt opportunties when other's are fearful
what to do in CRV REKT times
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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
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
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
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
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
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?
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
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
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
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
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
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
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