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The article is based on the blogger's Twitter.
Twitter: Drake On Digtal @Rentahomefast
1. okay okay, I will make a video on this later but why is convex where it is at......Let me explain So I have a bag of stablecoins, I want the best "reliable" yields where do I go, well some say pizza finance, some say disco swap or even smart coin (go figure must be smart)
2. I decide to deposit on convex because it has the higher tvl and is giving aprs that seem to be more sustainable than others......(I mean other people seem to think it is safe with there money so I dont want to be left out of the party)
3.convex is able to give the higher apr than curve because they take the curve tokens (aka the farming coin) and locks them up to vote on where emissions go.......this is important because nobody wants to deposit into a farm that gives nothin I mean you can just do that at a bank
4. so me depositing my coins in convex will now keep the flywheel going because my curve tokens are now given to convex which lock up the tokens in curve to vote for the emissions to go into the pools that they have.
5. when this happens now the aprs still stay high even with a higher tvl.......Now I know your saying why doesnt curve just give infinite tokens to all the pools......well heres why, The aprs are based on the price and tvl on curve.
6. what do I mean by this well the aprs you see are based on curve price so if the price is $6 and the aprs are 10% well if CRV goes to $3 the apr is now %5. tvl also plays a roll because if there is 1 mil $ in the pool earning 10% and another mil is deposited to = 2 mil
7. now the apr drops to %5 because there is only a certain amount of tokens allocated as rewards to the pool......... I go to say all this because now you see they flywheel taking place, I deposit, you deposit ,we all deposit because when we cooperate we all get higher rewards.
8. where as if I go here and you go there the incentives are broken up between the different pools and protocols..........The Defi 2.0 narrative will involve piggy backing off of one another to make a better defi experience. Now is the time to find great teams and accumulate NFA.
9.These tokens will have power you can look at them like a bank of money if you have a piece of the token you can tell where that money goes........I will make another thread later on this, I know peeps dont like to read that (100000,100000) but its good for the bones.
The article is based on the blogger's Twitter.
Twitter: Drake On Digtal @Rentahomefast
1. okay okay, I will make a video on this later but why is convex where it is at......Let me explain So I have a bag of stablecoins, I want the best "reliable" yields where do I go, well some say pizza finance, some say disco swap or even smart coin (go figure must be smart)
2. I decide to deposit on convex because it has the higher tvl and is giving aprs that seem to be more sustainable than others......(I mean other people seem to think it is safe with there money so I dont want to be left out of the party)
3.convex is able to give the higher apr than curve because they take the curve tokens (aka the farming coin) and locks them up to vote on where emissions go.......this is important because nobody wants to deposit into a farm that gives nothin I mean you can just do that at a bank
4. so me depositing my coins in convex will now keep the flywheel going because my curve tokens are now given to convex which lock up the tokens in curve to vote for the emissions to go into the pools that they have.
5. when this happens now the aprs still stay high even with a higher tvl.......Now I know your saying why doesnt curve just give infinite tokens to all the pools......well heres why, The aprs are based on the price and tvl on curve.
6. what do I mean by this well the aprs you see are based on curve price so if the price is $6 and the aprs are 10% well if CRV goes to $3 the apr is now %5. tvl also plays a roll because if there is 1 mil $ in the pool earning 10% and another mil is deposited to = 2 mil
7. now the apr drops to %5 because there is only a certain amount of tokens allocated as rewards to the pool......... I go to say all this because now you see they flywheel taking place, I deposit, you deposit ,we all deposit because when we cooperate we all get higher rewards.
8. where as if I go here and you go there the incentives are broken up between the different pools and protocols..........The Defi 2.0 narrative will involve piggy backing off of one another to make a better defi experience. Now is the time to find great teams and accumulate NFA.
9.These tokens will have power you can look at them like a bank of money if you have a piece of the token you can tell where that money goes........I will make another thread later on this, I know peeps dont like to read that (100000,100000) but its good for the bones.
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