$CVX Mega-🧵 and catalysts
🔹 overview
🔹 fundamentals
🔹 catalysts
🔹 community & tools
🔹 summary
I approach things from a product manager mentality because that is what I do, building VC-backed companies for a living.
Let’s dive in 👇
🔹 overview
🔹 fundamentals
🔹 catalysts
🔹 community & tools
🔹 summary
I approach things from a product manager mentality because that is what I do, building VC-backed companies for a living.
Let’s dive in 👇
/1
Overview
I did a 90 min chat with @TaikiMaeda2 in early December, sharing with his community an overview of @ConvexFinance and my thoughts.
It assumes knowledge of $CRV so it’s more of a level 2 discussion.
Overview
I did a 90 min chat with @TaikiMaeda2 in early December, sharing with his community an overview of @ConvexFinance and my thoughts.
It assumes knowledge of $CRV so it’s more of a level 2 discussion.
/2
@ConvexFinance, abstractly, is a vertically integrated framework that makes veTKN models better
They do so with a 3 solutions or products
🔹 Boost utility for LPs
🔹 Liquid locking of veTKN
🔹 Incentive market for votes
@ConvexFinance, abstractly, is a vertically integrated framework that makes veTKN models better
They do so with a 3 solutions or products
🔹 Boost utility for LPs
🔹 Liquid locking of veTKN
🔹 Incentive market for votes
/3
Analogy
🔹Google is a search utility
🔹Google aggregates demand (advertisers) and allows them to bid on supply (your attention) via AdWords
🔹Google aggregates more supply (publishers) via Adsense
Synergistic economy. Google profits then distributes to stakeholders
Analogy
🔹Google is a search utility
🔹Google aggregates demand (advertisers) and allows them to bid on supply (your attention) via AdWords
🔹Google aggregates more supply (publishers) via Adsense
Synergistic economy. Google profits then distributes to stakeholders
/4
Applied to @CurveFinance
🔹 $CVX enables Curve LPs max boost and rewards
🔹 $CVX aggregates supply or voting power on Curve ($cvxCRV)
🔹 $CVX aggregates demand by allowing protocols to bid on CRV emissions ($vlCVX)
Synergistic economy. $CVX distributes fees to stakeholders
Applied to @CurveFinance
🔹 $CVX enables Curve LPs max boost and rewards
🔹 $CVX aggregates supply or voting power on Curve ($cvxCRV)
🔹 $CVX aggregates demand by allowing protocols to bid on CRV emissions ($vlCVX)
Synergistic economy. $CVX distributes fees to stakeholders
/5
Stakeholders
Depending on which product you use, your value of @ConvexFinance differs. You can be only 1 bucket or all 3
🔹 LPs - care about max boost
🔹 Incoomers - care about veCRV and fees from bids for emissions
🔹DAOs - care about CRV + CVX emissions to their LPs
Stakeholders
Depending on which product you use, your value of @ConvexFinance differs. You can be only 1 bucket or all 3
🔹 LPs - care about max boost
🔹 Incoomers - care about veCRV and fees from bids for emissions
🔹DAOs - care about CRV + CVX emissions to their LPs
/6
LPs revenue
Convex has helped distribute over $500m of revenue to LPs in 10 months. It’s a yield optimizer first and has the 2nd largest TVL of any DeFi platform on $ETH next to $CRV
LPs revenue
Convex has helped distribute over $500m of revenue to LPs in 10 months. It’s a yield optimizer first and has the 2nd largest TVL of any DeFi platform on $ETH next to $CRV
/7
$CRV locked in @ConvexFinance
LP boost solution has enabled $CVX to lock over 43% (blue line) of voting power, and this will flip to majority over time based on current velocity creating a strong moat
$CRV locked in @ConvexFinance
LP boost solution has enabled $CVX to lock over 43% (blue line) of voting power, and this will flip to majority over time based on current velocity creating a strong moat
/8
Bidding fees to $CVX lockers
Votes are apparently good business on $CRV.
$CVX owners have earned $135m+ in bidding fees in 6+ months.
A yield that is 40-70% apr on buy-in and paid in non-inflationary token during bear or bull.
Bidding fees to $CVX lockers
Votes are apparently good business on $CRV.
$CVX owners have earned $135m+ in bidding fees in 6+ months.
A yield that is 40-70% apr on buy-in and paid in non-inflationary token during bear or bull.
/9
Product Market Fit
There are so many metrics to monitor. How does a product manager monitor protocol health though?
Facebook used 7 connections per user as its primary KPI early on as that was the critical # of connections to make app useful.
What is it for $CVX?
Product Market Fit
There are so many metrics to monitor. How does a product manager monitor protocol health though?
Facebook used 7 connections per user as its primary KPI early on as that was the critical # of connections to make app useful.
What is it for $CVX?
/10
Primary KPI - Moat
cvxCRV locked / veCRV locked > 50%
People focus on % CRV daily emissions, but what really matters is majority of locked veCRV is in convex.
Ie % daily emissions locked could be 5%. If all 5% were locked in cvxCRV then ratio is 100% on convex that day
Primary KPI - Moat
cvxCRV locked / veCRV locked > 50%
People focus on % CRV daily emissions, but what really matters is majority of locked veCRV is in convex.
Ie % daily emissions locked could be 5%. If all 5% were locked in cvxCRV then ratio is 100% on convex that day
/11
Why is this the moat?
$CVX value lies in the governance power the DAO controls. If the protocol utility is healthy (LP boosties, liquid locked veTKN) then it will aggregate veTKN faster via incentives on-platform vs user’s options off-platform.
Why is this the moat?
$CVX value lies in the governance power the DAO controls. If the protocol utility is healthy (LP boosties, liquid locked veTKN) then it will aggregate veTKN faster via incentives on-platform vs user’s options off-platform.
/12
Secondary KPI
$ per $vlCVX
The value of emissions in $CRV + $CVX per epochs. The higher over $1 the more profitable.
Since market fluctuates you can alternatively spreadsheet against $ETH as a normalized metric.
If $CRV $CVX 📈, bid will be stronger 💰
Secondary KPI
$ per $vlCVX
The value of emissions in $CRV + $CVX per epochs. The higher over $1 the more profitable.
Since market fluctuates you can alternatively spreadsheet against $ETH as a normalized metric.
If $CRV $CVX 📈, bid will be stronger 💰
/13
Other KPIs to be mindful of as they signal weakness or strength by product:
LPs
🔹 $cvxCRV farmed over time
🔹 $cvxCRV yield
🔹 # apps built on top of $CVX
vlCVX
🔹 yield per $CVX
🔹 % locked 🔒
🔹 # DAOs bribing & retention
🔹 % $CVX daily emissions / $CVX bought
Other KPIs to be mindful of as they signal weakness or strength by product:
LPs
🔹 $cvxCRV farmed over time
🔹 $cvxCRV yield
🔹 # apps built on top of $CVX
vlCVX
🔹 yield per $CVX
🔹 % locked 🔒
🔹 # DAOs bribing & retention
🔹 % $CVX daily emissions / $CVX bought
/14
Catalysts
There are a number of catalysts to 👀
🔹 @fraxfinance app (q2)
🔹 @CurveFinance v2 adoption (q2 and beyond)
🔹 $CRV emissions tapering (Aug)
🔹 $CVX emissions tapering 90% farmed (q3-q4)
Let’s dive into each 👇
Catalysts
There are a number of catalysts to 👀
🔹 @fraxfinance app (q2)
🔹 @CurveFinance v2 adoption (q2 and beyond)
🔹 $CRV emissions tapering (Aug)
🔹 $CVX emissions tapering 90% farmed (q3-q4)
Let’s dive into each 👇
/15
@fraxfinance is a decentralized algostable ecosystem. It’s token $FXS and stable is $FRAX.
$CVX soft launched $cvxFXS late last year and already controls 6.4m tkns or $138m.
This is before LP boost solution for $FXS LPs. Remember $cvxCRV chart? Same deal 📈 soon
@fraxfinance is a decentralized algostable ecosystem. It’s token $FXS and stable is $FRAX.
$CVX soft launched $cvxFXS late last year and already controls 6.4m tkns or $138m.
This is before LP boost solution for $FXS LPs. Remember $cvxCRV chart? Same deal 📈 soon
/16
@CurveFinance v2 was released earlier this year, and supports volatile pairs comparable to $UNI v3.
🔹24 pairs to date
🔹vol share 📈
🔹v2pools.com for metrics
Helpful update from @CurveCap 👇
@CurveFinance v2 was released earlier this year, and supports volatile pairs comparable to $UNI v3.
🔹24 pairs to date
🔹vol share 📈
🔹v2pools.com for metrics
Helpful update from @CurveCap 👇
/17
$CRV emissions tapering happens every August anniversary.
Think of it like the $BTC halvening for Curve. Last time, we saw a run from $1.25 to $6.48 (5x)
We saw $CVX run from $2.14 to $53.91 (25x)
$CVX is a levered bet on $CRV 🧠
$CRV emissions tapering happens every August anniversary.
Think of it like the $BTC halvening for Curve. Last time, we saw a run from $1.25 to $6.48 (5x)
We saw $CVX run from $2.14 to $53.91 (25x)
$CVX is a levered bet on $CRV 🧠
/18
$CVX emissions tapering
One of the 🧠 tokenomics decisions was basing emissions off $CRV farmed and tapering faster as more value is accrued to protocol.
To date, ~158m farmed or almost 90% sometime in 2022H2.
DAOs know that stacking $CVX is best way to stack $CRV
$CVX emissions tapering
One of the 🧠 tokenomics decisions was basing emissions off $CRV farmed and tapering faster as more value is accrued to protocol.
To date, ~158m farmed or almost 90% sometime in 2022H2.
DAOs know that stacking $CVX is best way to stack $CRV
/19
DAOs accumulating
This is where the beauty is. DAOs stack $CVX because of utility
🔹24 to date
🔹12.2m or 21% of supply locked
🔹Acquisition rate 📈
🔹$CVX becoming net-deflationary 🧠
DAOs accumulating
This is where the beauty is. DAOs stack $CVX because of utility
🔹24 to date
🔹12.2m or 21% of supply locked
🔹Acquisition rate 📈
🔹$CVX becoming net-deflationary 🧠
/20
Community & Tools
The community is everything. These are great resources if you’ve been red pilled. A list in each category
🔹 Analytics
🔹 Analysts - updates, fa, ta
🔹 Community Tools
🔹 Partner apps
Community & Tools
The community is everything. These are great resources if you’ve been red pilled. A list in each category
🔹 Analytics
🔹 Analysts - updates, fa, ta
🔹 Community Tools
🔹 Partner apps
/21
Analytics
Dune analytics dashboard containing many of the core KPIs discussed by @marcov_91
dune.xyz
Analytics
Dune analytics dashboard containing many of the core KPIs discussed by @marcov_91
dune.xyz
/22
Follows
@crypto_condom - fa
@CurveCap - newsletter
@DefiMoon - updates
@DefiDividends - fa + tools
@0xAlunara - tools
@wagmiAlexander - fa
@CFrogE1 - memes
@CredibleCrypto - ta
@C2tP - dev
@CurveFinance
@ConvexFinance
@VotiumProtocol
If I missed anyone let me know
Follows
@crypto_condom - fa
@CurveCap - newsletter
@DefiMoon - updates
@DefiDividends - fa + tools
@0xAlunara - tools
@wagmiAlexander - fa
@CFrogE1 - memes
@CredibleCrypto - ta
@C2tP - dev
@CurveFinance
@ConvexFinance
@VotiumProtocol
If I missed anyone let me know
/23
Community apps
Llama.airforce (@0xAlunara)
🔹promo flyer easy to share
🔹LP data
🔹Votium bribes overview and rounds
Daocvx.com (@DefiDividends)
🔹stats on DAOs acquiring
V2pools.com
🔹 $CRV v2 pool performance
Community apps
Llama.airforce (@0xAlunara)
🔹promo flyer easy to share
🔹LP data
🔹Votium bribes overview and rounds
Daocvx.com (@DefiDividends)
🔹stats on DAOs acquiring
V2pools.com
🔹 $CRV v2 pool performance
/
Summary
🔹 $CVX makes veTKN better
🔹 largest owner of $CRV (and soon $FXS)
🔹 levered bet on $CRV and $FXS ecosystems
🔹 net-deflationary due to market demand
🔹 blue chip yield paying 40-70% Apr in non-native TKN
🔹 strong community, team and trusted brand
Summary
🔹 $CVX makes veTKN better
🔹 largest owner of $CRV (and soon $FXS)
🔹 levered bet on $CRV and $FXS ecosystems
🔹 net-deflationary due to market demand
🔹 blue chip yield paying 40-70% Apr in non-native TKN
🔹 strong community, team and trusted brand
/
Sharing means caring
If you found @ConvexFinance interesting or the thread helpful please share the original post 🙏
Give me a follow if you like deep dives into protocols I find interesting
Sharing means caring
If you found @ConvexFinance interesting or the thread helpful please share the original post 🙏
Give me a follow if you like deep dives into protocols I find interesting
/ Request
If you are an app building on top of $CVX $CRV let me know. I didn’t forget about this important pillar but selfishly want to dig deeper and add to this thread as a resource as an addendum
If you are an app building on top of $CVX $CRV let me know. I didn’t forget about this important pillar but selfishly want to dig deeper and add to this thread as a resource as an addendum
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