Curve v2 Reaction Thread 🗯️🧵
Questions, Answers, Stabs, Heat, Math + Memes
Curve v2 lit up the web. Some people got it!
@CurveFinance @0xmons can you factcheck if this understanding of curve v2 is correct?
curve v2 only allows a repegging if it has accumulated 2 times more profit recently(?) than what could be lost due to this repegging , and that is what allows IL to be around the same level as a normal xy=k
Some people tried valiantly
Did I get this right?
@Uniswap v3: flexible. Choose your LP range and fees. “Limit orders” are sitting duck because cancelling them due to price is expensive.
@CurveFinance v2: uses an oracle to update their “limit orders”. All LPs share the same designed strategy (inflexible)
@0xdjma @Uniswap Not exactly. Yes, same strategy for all. But not simply using an oracle because that would cause a loss - more interesting mechanics than that
Another noble swing…
@hasufl @CurveFinance might be misreading but looks like a stableswap curve around a dynamically targeted price based on an ema
where lps take gamma risk on ETH|BTC|USD, plus some sort of gap risk on oracle repricings
@wilburforce_ @hasufl Not correct. Changing the target could be lossy, so it (price_scale) is only directed towards the EMA (price_oracle) but moves only when got enough profit for the move
Telegram was the place to go for a free class in higher arithmetic.
@CurveFinance telegram channel is spot on about this v2 release. $CRV let's fucking go!
goodgirlgonecrypto.onlymarketbuy @gggonecrypto
Or Tarun
The interesting thing about the Curve V2 design is that it takes advantage of 1-homogeneity
Remember when @GuilleAngeris told you about a bijection between certain 1-homogeneous payoff functions and CFMM trading functions?
Curve Finance @CurveFinance
Some people took a stab in the dark
The best quip came here
Curve papers be like:
then the price is given as:
x^gzh*k(dy)ur-2xyg[fh,jf,...]+gh/2*y%h
where k is a constant
Close… except k is defined as such…
A few interesting questions got promptly answered. Where else can you get a super genius billionaire running around providing a free education in higher physics?
does anyone know if curve v2 is vulnerable to a miner collusion attack? suppose they censor all transactions and set the EMA themselves over time. can they drain the pool?
@spreekaway They couldn't "drain" it, but they could keep it in "Balancer/Sushi/UniswapV2" like mode (which is suboptimal) if they all colluded for a long time
@CurveFinance @0xPolygon Will projects be able to create their own pools in this model like they can with the stable pools?
@CurveFinance Any details on the atricrypto pool that seems to have been just added to curve.polygon?
@DBlapps It was actually deployed earlier than the pool on Ethereum. Unlike that one, it uses all 3 stablecoins (DAI, USDC, USDT) and also lends out all assets on Aave while they are in the pool
Some got intimidated by the math
Including some people who have jobs where math should be a prerequisite
VCs, amiright?
@Cryptoyieldinfo Would explain why insider VCs and news outlets always shaft Curve. Either to bury the inevitable or to accumulate
Some interpreted the difficult math as a feature
$CRV out of nowhere with exchange for volatile assets
I don’t know what any of this means
All I know is that it sounds like we are going up from here
Trust the plan
Curve Finance @CurveFinance
Simple CRV long thesis
The curve guys come off as ridiculously smart in a field like defi, which probably has the greatest concentration of A+ programming talent of any field in the world (AI/ML as competitor). And they can find a way to make things “just work”
Some pledged to copy the math outright.
Mmmm that's what I was looking for (since the last month)
https://t.co/pOQvr3MyIh
Concentrated liquidity, AUTO rebalancing (yes AUTO!)
Great job @CurveFinance team
Now looking for swap volumes "war"!
And integrating as much as I can in my current smart contracts 😎
Curve Finance @CurveFinance
Others noted the new space race will be in a numerical domain.
A lot of people played up the $CRV vs $UNI angle
$CRV V2 > $UNI V3 https://t.co/8P2dbAj9HN
Curve Market Cap @CurveCap
$CRV vs $UNI war intensifying
Curve Finance @CurveFinance
Hayden Adams: "We're the most capital efficient AMM around"
Michael Egorov: "Hold my graphing calculator"
yeah built on top and then LPs got charged hefty performance fees and management fees for it eh? Thanks but no thanks Uniswap v3. I'm a lazy fuck LP and @CurveFinance will be my choice for passive LP lel
Hayden Adams 🦄 @haydenzadams
@CurveCap @DegenSpartan I’m at the stage of the cycle where I’m selling $UNI for $CRV (and $SUSHI) just cos hayden adams is such an annoying fuktard
You'd think a grown man who still sleeps with a unicorn body pillow would be a bit more humble https://t.co/9ly1l4op8h
Some stumbled across it in the wild. Check the timestamp, DefiMoon called it before the actual announcement.
In fact, a few hundred pages worth of people to the tune of $9MM…
Some people just aped
@CurveFinance @0xPolygon Only 5% slippage for a 1 ETH trade on a pool with 20 ETH in liquidity. Guys, this is fantastic. Can't wait to learn more
Oh theres a V2, now im aping more from here. Lets go 🚀🚀🚀🦧🦧🦧
Curve Market Cap @CurveCap
Others asked questions before aping
@CurveFinance @0xPolygon Before I ape: Will my eth/btc amount in the atricrypto pool decline if their usd value rises?
Others did their own research…
I miss reading the white papers.
curve.fi/files/crypto-p…
Bit of a different league from the copy pastes we are getting bored of.
Anyway $CRV 🔥🔥🔥
Curve Finance @CurveFinance
Time to dig in!
Curve Finance @CurveFinance
Some noted the effect on the $CRV wars
$CRV wars are about to get even hotter if the TriCrypto swaps are actually this capital efficient.
Joseph Delong 🔱 @josephdelong
Wait until veCRV is needed to boost LPs for dozens of different new 'crypto' pools.
$CRV $YFI $CVX all will go to stratosphere.
Obviously being able to trade volatile assets on Curve is amazing for $CRV and $cvxCRV stakers.
I wonder if crvTRICRYPTO LP will outperform holding STETH long term and by how much?
Current Curve ETH LP adds 3-5% points to returns and the gap has been narrowing, but has no IL.
Curve Finance @CurveFinance
One talented builder spun it into a job offer
Predictions
Obviously being able to trade volatile assets on Curve is amazing for $CRV and $cvxCRV stakers.
I wonder if crvTRICRYPTO LP will outperform holding STETH long term and by how much?
Current Curve ETH LP adds 3-5% points to returns and the gap has been narrowing, but has no IL.
Curve Finance @CurveFinance
Important Disclaimers
Although the tricrypto pool is tokenized [0xcA3d75aC011BF5aD07a98d02f18225F9bD9A6BDF], it's not an intent to use it as a token elsewhere. Be careful when you see "tricrypto" swapped for something in other places / veryfy the token address
Beware that crypto pools DO have IL (similar to Sushiswap / Balancer). They may have higher capital efficiency / APY but ~same IL!
Perhaps the news simply doesn’t cover Curve because most journalists aren’t good at math.
Not necessarily correct about EMA but it's not easy to understand what's happening indeed. It's internal "price_scale" moving towards EMA
Cointelegraph @Cointelegraph
And yes, the memes
For more info, check our live market data at https://curvemarketcap.com/ or our subscribe to our daily newsletter at https://curve.substack.com/. Nothing in our newsletter can be construed as financial advice, or even coding advice. Author is a $CRV maximalist.