Alright it's time for the FRAX UST 4Pool thread you've all been waiting for!
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So how did this big move come about?
Most people don't understand Curve. They think it's a DEX with less cap efficiency than Uni v3. Wrong. Curve is the "fiat savings account" of DeFi. Forget all the middle iq takes "cUrVE fEeZ r Lez tHan CRV inFlayShon. CRV iz ponZu"
Most people don't understand Curve. They think it's a DEX with less cap efficiency than Uni v3. Wrong. Curve is the "fiat savings account" of DeFi. Forget all the middle iq takes "cUrVE fEeZ r Lez tHan CRV inFlayShon. CRV iz ponZu"
Don't believe me? It's literally the 2nd sentence of the Curve whitepaper SINCE 2019! The gigabrains at @CurveFinance planned this all along. That has been the ultimate master plan, although I doubt even they thought it would be THIS successful as a high yield, low risk account.
So @CurveFinance is more like an algorithmic savings account. The terms of the savings account? The A factor (aka the peg affinity of your deposits). And gamma (the new v2 pool param). This allows anyone to build a "term sheet for a savings account" when they create a Curve pool.
Curve is not simply a DEX. It's a DEX & the most ideal tokenomics for creating an economy around a savings account/bank. This savings account is what also provides deep liquidity to make pegged swaps between the assets in the "account" (aka pool).
Before Curve v2, it was limited to synthetic pegs but now a savings account can be created with any 2 asset deposits. Then @ConvexFinance also came along to provide professional management services+extra yield for Curve's decentralized bank accounts. Curve is not simply a DEX.
@stablekwon & I discussed how @terra_money & @fraxfinance can take the DeFi world by storm to create the greatest "savings account" crypto has ever seen. 🚀 A savings account used by protocols, retail, farmers, and institutions alike with complete accessibility on every chain.
@hasufl wrote in 2019 how the "stablecoin wars" will play out with battles of high yield interest rates. He's right! Imo these rates, as long as not systemic, will provide the greatest answer to inflation crypto has seen. 4Pool will lead from the front.
Terra currently runs the undisputed leading "savings account" in the industry with @anchor_protocol. Now imagine what we can do after they bring that size and work with our AMO tech. And yes, this also means FRAX will be using UST as collateral & manage 4Pool AMOs with big POL!
We don't want to stop there though. Any stablecoin that uses 4Pool for its base liquidity will get direct support by both Terra and FRAX. Frax will immediately propose a veFXS gauge which will emit additional FXS tokens on top of the CRV+CVX tokens of your pool. And more 🤫
We will also directly help any cross chain expansion needs. My own personal goal is to make sure any project that holds FRAX is getting more than $1 of value per FRAX. That's how to create a lasting network effect of fraximalists and lunatics ¤🌕¤
My ethos has always been "stablecoin pegs are always stronger together than competing." With this 4Pool we're truly embracing that positive sum mentality. We're providing the greatest savings account crypto has ever seen thanks to Curve's tech+tokenomics. Inflation be damned!
¤ It's going to be a VERY exciting next few months for DeFi, inflation resistance, and the stablecoin space ¤
@stablekwon said it best:
@stablekwon said it best:
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