The Liquidity Warz of 2025: A Brief Review of Curvance (Part 1) 🤓
Apr 13, 2023
So, what does crypto NEED right now?
How 'bout borrowing on stuff like cvxCRV, auraBAL, and LPTs...while still earning the passive interest.
Woah!
The invention is here 👇
What this post will cover:
1️⃣ What is @Curvance?
2️⃣ What is the Omnichain Gauge?
3️⃣ Tokenomics
5️⃣ Lending and Borrowing
6️⃣ Roadmap & Future updates
So, is Curvance worth the romance?😍🤔🧵👇
1️⃣ What is @Curvance?
Curvance wants to give collateralized credit to yield farmers across multiple chains and platforms.
This, they hope, will strategically position them as key players in future Defi Warz.
Their fresh approach caught our attn!👇
How will they do that?
Let's use cvxCRV as an example...👇
Curvance routes the deposited cvxCRV to the original Convex pool...
Your cvxCRV still earns its original interest, but you can now "lock" your Curvance deposit to get a credit limit.
Doing this also earns you CVE tokens...👇
🤩Platform fees from the yield on TVL
🤩CVE inflation offset
🤩Voting rights in the Curvance DAO
So, they've designed a platform focused on modular integration, with a unique gauge and voting escrow system, which we'll cover next 👇
2️⃣ What is the Omnichain Gauge?
@Curvance allows you to lock CVE as veCVE on any chain and vote for any pool on any chain.
Pretty cool, right?
But how?
Using a communication layer between Ethereum and an unlimited number of "child" chains, which has lots of benefits 👇
🤓all protocol fees are shared equally across all chains.
🤓users can lock tokens on rollups, significantly saving on gas costs while maintaining deep liquidity and fee generation present on ETH Mainnet.
🤓protocols can expand liquidity across networks.
Well, it uses Snapshot's gasless voting to tally up a person's votes across all chains.
Once a voting epoch ends, the votes get moved on-chain and are processed by a matching engine on Ethereum 👇
From there, the emissions get distributed to each pool for the next epoch.
Basically, it's omnichain, with ETH as the main chain.
Every so often, each "child chain" reports back its locked token state to ETH, along with all the fees collected during that time 👇
The ETH rewards are available right away and messages are sent to the other chains with the appropriate ETH and CVE rewards for each child chain.
CVE is also omnichain, so users can transfer them across different blockchains without requiring a liquidity pool 🔥
3️⃣ Tokenomics
The CVE token will allow users to:
1. access DAO voting rights
2. access gauge emission voting rights
3. access platform fee redistribution
Initial Circulating Supply = 40,368,588.72
Max Supply = 420,000,069
But, how will CVE be allocated? 🤔
👀Token Allocation👀
55% - Gauge Emissions, Boosted Lock Rewards (over minimum 12 years)
13.5% - Team – Vested over 4 years released monthly, 25% will be vote-locked on TGE
13% - Treasury – 25% (vote-locked on TGE) 👇
6% -Seed Raise – Vote-locked with no additional CVE reward incentive during the vesting period (1 year)
1.7% - Initial Pool Liquidity- paired with treasury tokens as protocol-owned liquidity after beta launch
1% - Early Backers Raise – Vote-locked with no additional CVE reward incentive during the vesting period (1 year)
0.5% - Early Backer/Incentivized Testnet Airdrop - From TGE as call options
👀Boosted Rewards👀
So, they have a "continuous lock" feature that keeps users locked for max duration sans the need to relock and waste gas.
In return, users get a bonus on their VP (10% atm)😎
👀The Emission Locker👀
Another great feature allows those who have unclaimed CVE rewards from gauge emissions to claim and choose to instantly lock them as veCVE for a 10% bonus allocation.
👀CVE Call Options👀
Remember,
1.3% of tokens are for "Beta Boosted Emissions," which will be emitted as call options...
and
0.5% of tokens are for Early Backer/Incentivized Testnet Airdrop, which will be emitted as call options...
So, how do these options work?👇
This will limit potential sell pressure and align incentives by requiring users to put capital at risk in order to receive CVE tokens 👇
This also means if the protocol is successful, users will receive more and more call options.👇
Yes,
a. The options can be exercised immediately following the LBP auction with a 6 week expiration.
b. The strike price will be 50% of the starting LBP token price.🤓
Pretty neat, right?
Ready to take your on-chain data skills to the next level?
Make gains by learning with the Brainyield Explorers and get up to 30 days of Nansen for FREE (PLUS big brain bonuses!🧠)
Discover how to invest in crypto like a pro! 🔥
Get a Crypto Market Tip in your inbox every week.
We hate SPAM. We will never sell your information, for any reason.