Let’s fully understand Curve War - by ta1suke [[veCRV]]
Understanding crv - Curve Resources
- Rewards (Admin Fees)
- CRV can be locked to receive trading fees from the Curve protocol. A community-led proposal introduced a 50% admin fee on all trading fees. These fees are collected and converted to 3CRV, which are then distributed to veCRV holders.
- Boosting
- One of the main incentives for locking CRV is the ability to boost rewards on provided liquidity. Vote-locking CRV allows users to acquire voting power to participate in the DAO and earn up to a 2.5x boost on the liquidity they provide on Curve.
- Voting
- Once CRV holders vote-lock their CRV, they can start voting on various DAO proposals and pool parameters.
The “Curve Wars” refer to the competition among various decentralized finance (DeFi) protocols to attract liquidity and influence the allocation of CRV (Curve’s native token) rewards in the Curve Finance ecosystem. The wars revolve around acquiring veCRV tokens, which are used to influence the distribution of CRV rewards to different pools. Projects compete to make their tokens more liquid and easily available for exchange, with some even resorting to “bribing” veCRV holders to influence reward allocation. The battle for yield by acquiring veCRV is a central aspect of the Curve Wars, with various protocols vying for control and influence within the Curve ecosystem. Convex Finance has emerged as a key player in the Curve Wars, commanding a majority share of CRV tokens and influencing governance proposals to maximize rewards. The wars have also led to the introduction of new strategies, such as offering additional rewards to users who convert and stake their tokens. Overall, the Curve Wars represent a complex and competitive landscape within the DeFi industry, where protocols vie for control and influence over liquidity and reward distribution.
The mechanism of the Curve Wars involves various aspects, including the acquisition of veCRV tokens, which are used to influence the allocation of CRV rewards to different pools. Projects compete to make their tokens more liquid and easily available for exchange, with some even resorting to “bribing” veCRV holders to influence reward allocation. Convex Finance has emerged as a key player in the Curve Wars, commanding a majority share of CRV tokens and influencing governance proposals to maximize rewards. The wars have also led to the introduction of new strategies, such as offering additional rewards to users who convert and stake their tokens.
- The Curve Wars Explained: When DeFi Becomes Aggressive
- The Curve Wars Explained: What & Why? - Phemex Blog
- The Curve Wars Explained
The current state of the Curve Wars involves a competitive battle among various DeFi protocols to acquire veCRV tokens and influence the allocation of CRV rewards in the Curve Finance ecosystem. This competition revolves around controlling the distribution of rewards to different pools that provide liquidity. Convex Finance has emerged as a key player, commanding a majority share of veCRV tokens and influencing governance proposals to maximize rewards. Other protocols, such as Yearn and StakeDAO, are also actively involved in the Curve Wars, vying for control and influence within the Curve ecosystem. The wars have led to the introduction of new strategies, such as offering additional rewards to users who convert and stake their tokens. Overall, the Curve Wars represent a complex and competitive landscape within the DeFi industry, where protocols compete for control and influence over liquidity and reward distribution.
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