• Contact Us
  • Privacy Policy
  • Live Exchange
  • LIVE ICO
  • Shop
Monday, April 19, 2021
CryptoNewsking.com
Advertisement
  • Home
  • LIVE UPDATES
    • Live Coin Market Cap
    • Live Exchange
    • LIVE ICO
  • News
    • Crypto News
    • Bitcoin News
    • Ethereum News
    • Blockchain
    • Altcoin News
    • Exchanges News
    • Wallet News
    • Regulation
    • ICO
  • Guide Reviews
    • How to Buy Crypto
    • Bitcoin 101
    • Ethereum 101
    • Blockchain 101
    • Mining 101
    • Coins
    • Exchanges
    • Wallets
  • Market
  • Price Analysis
  • Business
  • Videos
  • Shop
No Result
View All Result
  • Home
  • LIVE UPDATES
    • Live Coin Market Cap
    • Live Exchange
    • LIVE ICO
  • News
    • Crypto News
    • Bitcoin News
    • Ethereum News
    • Blockchain
    • Altcoin News
    • Exchanges News
    • Wallet News
    • Regulation
    • ICO
  • Guide Reviews
    • How to Buy Crypto
    • Bitcoin 101
    • Ethereum 101
    • Blockchain 101
    • Mining 101
    • Coins
    • Exchanges
    • Wallets
  • Market
  • Price Analysis
  • Business
  • Videos
  • Shop
No Result
View All Result
CryptoNewsking.com
No Result
View All Result
Home Bitcoin News

Researcher Explains Why Curve (CRV) and Yearn.Finance (YFI) Are Falling

10/16/2020
in Bitcoin News
0
Researcher Explains Why Curve (CRV) and Yearn.Finance (YFI) Are Falling
194
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Curve and yearn.finance are among the few decentralized finance projects that have interesting yield farming products to offer. Their volumes have shot upwards due to consistent community involvement. Nevertheless, the price of their governance tokens is reflecting the boom.

Anil Lulla, co-founder/COO of Delphi Digital – a New York-based digital asset research firm, attempted to provide a potential explanation behind the said divergence. In his latest article, titled “Do Vested Rewards Work,” Mr. Lulla dug into the very token distribution models of Curve and yearn.finance.

Related articles

A 15 y.o. boy Earns 0.5 BTC in One Day!

A 15 y.o. boy Earns 0.5 BTC in One Day!

02/22/2021
Three Reasons Why Metadata Privacy Is the Next Level Evolution Towards Data Privacy

Three Reasons Why Metadata Privacy Is the Next Level Evolution Towards Data Privacy

02/22/2021
Curve is down about 90 percent from its record high. Source: CRV/USD on TradingView.com
Curve is down about 90 percent from its record high. Source: CRV/USD on TradingView.com

Why Curve Crashed?

By putting his focus mainly on Curve and its governance crypto CRV, the researcher noted that the protocol ensures “insane inflation” by releasing about 2 million CRV every day. Nevertheless, it does not offset the supply with vesting, a phenomenon that allows the project to reward long-term stakers.

Mr. Lulla added that the absence of “vested rewards” creates a downside pressure on CRV, for stakers do not feel the need to lock the token in Curve liquidity pools for a longer timeframe. Instead, they dump CRV in open markets, a sentiment that has already brought its value down by 90 percent.

Curve, CRVUSD, CRV

Curve supply and price comparison. Source: Anil Lulla

The researcher also discussed the massive dumping of HEGIC tokens, after its parent protocol of the same name decided to scrap their plans of vesting. Excerpts from his tweet:

“Almost immediately, the community started complaining and HEGIC started dumping. Just a few hours later, HEGIC announced they’d be returning to a lock-up.”

The Fixing

But a recent flurry of new DeFi projects is attempting to overcome the issue that Curve and yearn.finance carried.

Mr. Lulla named DODO, a liquidity protocol that reserved a part of its total supply for incentive programs for liquidity providers and traders alike. The winnings came with a lockup period of 14 days, after which they vested linearly over the next six months.

“Despite the lock-up, DODO got ~$100M of liquidity from 3K+ wallets,” noted Mr. Lulla.

13/ Vesting rewards does more than just help a community form though.

By not creating a large supply glut on the market from incentives, the token can be in a good position to appreciate in price if the product continues to progress.

This has follow-on effects.

— Anil Lulla (@anildelphi) October 15, 2020

He also explained how Delphi Digital proposed PowerPool, a DeFi protocol, to scrap their plan of releasing 85 percent of their governance token CVP’s supply soon after liquidity mining.

“Our team published a proposal where 5 percent of total supply currently circulating will only rise by an additional 7-12 percent in the next 12M via vesting,” Mr. Lulla wrote. “Despite the holders whose tokens are now locked up voting, the proposal passed with overwhelming support (95% of votes approved).”

Summing up, Mr. Lulla noted that vesting could attempt to solve the issues related to “opportunistic farming.” It would allow serious stakers to invest in the long-term growth of promising projects like Curve and yearn.finance.

“Teams should leverage these programs as a valuable tool,” the researcher said.


Credit: Source link

Share78Tweet49

Related Posts

A 15 y.o. boy Earns 0.5 BTC in One Day!

A 15 y.o. boy Earns 0.5 BTC in One Day!

02/22/2021
0

An American teenager from Miami, Florida earned 0.7 BTC in one day. His name is Karl Miller and he is...

Three Reasons Why Metadata Privacy Is the Next Level Evolution Towards Data Privacy

Three Reasons Why Metadata Privacy Is the Next Level Evolution Towards Data Privacy

02/22/2021
0

Most people think metadata is something you only have to worry about if you are running an SEO campaign. However,...

Leading DeFi Projects to Follow in 2021

Leading DeFi Projects to Follow in 2021

02/22/2021
0

Without a doubt, dApps will continue to disrupt the crypto world as companies are investing heavily in the development of...

Ethereum (ETH/USD) Falls 26% From Historic High; What’s Next?

Ethereum (ETH/USD) Falls 26% From Historic High; What’s Next?

02/22/2021
0

Ethereum fell Monday in sync with the cryptocurrency market’s other top assets, including Bitcoin, Binance Coin, Polkadot, and Cardano. The...

Bitcoin Drops After Record-Setting Rally; Is Bearish Bias Returning?

Bitcoin Drops After Record-Setting Rally; Is Bearish Bias Returning?

02/22/2021
0

Key Bitcoin Takeaways Bitcoin plunged by almost 5.5 percent on Monday after setting up a record high in the previous...

Load More
  • Trending
  • Comments
  • Latest
After XRP partnership, is Polkadot and Litecoin next on Wanchain’s list

After XRP partnership, is Polkadot and Litecoin next on Wanchain’s list

04/18/2021
XRP price now eyeing $1.00 after key support level holds, BTC price soars

XRP price now eyeing $1.00 after key support level holds, BTC price soars

11/30/2020
sicodice SCAM OR LEGIT | bitcoin | btc | earn free bitcoin | cryptocurrency | crpto

sicodice SCAM OR LEGIT | bitcoin | btc | earn free bitcoin | cryptocurrency | crpto

10/03/2019

With ETH 2.0 To Be Launched Soon, Where’s Ethereum Classic At

09/12/2019
Dogecoin (DOGE) market cap hits $50B, surpassing ING and Barclays

Dogecoin (DOGE) market cap hits $50B, surpassing ING and Barclays

04/19/2021
Dogecoin at $0.44 embraces ‘literal moon’ ahead of Elon Musk SpaceX launch

Dogecoin at $0.44 embraces ‘literal moon’ ahead of Elon Musk SpaceX launch

04/19/2021
Cardano’s upcoming Alonzo update pushes ADA price despite a major delay

Cardano’s upcoming Alonzo update pushes ADA price despite a major delay

04/19/2021
Bitbuy: Buying crypto made easy in Canada

Bitbuy: Buying crypto made easy in Canada

04/19/2021
CryptoNewsking.com

CryptoNewsKing.com is a curated world cryptocurrency news online portal which aims to provide the latest crypto and blockchain related news with real time updates from all around the world.

Donate

Do you like what we offer? Your donation can help us continue to improve the services we offer. Please send your donations to the addresses below. Thank you for your support and may the crypto force be with you.

BTC 

35RWoVxFbnmySWFHtYNV28rU4Hyf5TrTXD

ETH

0x1B35F874152c7d597029007f98f1F2361179034B

LTC

MJ3Cv9NXPt8ZM9x6mDiHGUFpm5yhiNntwT

Subscribe to get more!

  • Contact Us
  • Privacy Policy
  • Live Exchange
  • LIVE ICO
  • Shop

© 2019 CryptoNewsKing.com - All rights reserved

No Result
View All Result
  • Home
  • LIVE UPDATES
    • Live Coin Market Cap
    • Live Exchange
    • LIVE ICO
  • News
    • Crypto News
    • Bitcoin News
    • Ethereum News
    • Blockchain
    • Altcoin News
    • Exchanges News
    • Wallet News
    • Regulation
    • ICO
  • Guide Reviews
    • How to Buy Crypto
    • Bitcoin 101
    • Ethereum 101
    • Blockchain 101
    • Mining 101
    • Coins
    • Exchanges
    • Wallets
  • Market
  • Price Analysis
  • Business
  • Videos
  • Shop

© 2019 CryptoNewsKing.com - All rights reserved