A-holes really be making charts like this instead of going to therapyβ¦
So it might look toughβ¦ but letβs drop the TL/DR at the top:
Highest yield on $CVX
βOhβ¦ why didnβt you tell me this was about my bagzβ¦β
Between the two sites, you get both of these. Yup, both.
So have we convinced to keep reading yet? Weβll go into as much depth on the technical aspects of the solution later, but first, the easy stuff.
How Can I Profit From This?
If you donβt care about the source of the yield (you?) and just want to ape, itβs fairly straightforward. It requires about 24 hours worth of object permanence, which may exclude the typical crypto investor though.
Via the relatively verbose TL/DR from the Aladdin DAO team launch article:
Thatβs right. If you want the yield youβll have to jump through enough hoops to keep the leftwits away for at least a bit. You have to deposit on Concentrator, wait, claim, then stake onto CLever.
Now, we do expect as people decipher this intricate Rube Goldberg machine, weβll see the yield drop. Thereβs about $400K worth of Convex in there at the moment, which is relatively low.
For comparison, the Llama Airforce/Pirex pounder has ~30% APY on $10MM TVL.
Also, cryptocurrencies are risky and may be volatile, so talk with your registered financial advisor, as none of this is financial advice. What is this though?
1) What
Letβs dive into the gory details.
βArbitrage Bond Compoundβ sounds complicated, so weβve saved the guts for last. We recommend this thread from @kmets_ as your primer on the subject.
What precisely is going on here is a sort of Grand Unified Technology combining Aladdinβs flagship products in Concentrator and CLever.
CLever was built with two means of providing liquidity between $clevCVX and $CVX:
The Furnace: redeems $CVX 1:1, but refills slowly
Curve Pool: instant redemptions, but at market rate
Which one is best? It depends! It can get complex to calculate and depends on the specific balances.
Fortunately, CLeverβs sister project Concentrator exists to automate yield farming. The concept of $abcCVX is simply a farm that automates this choice on the backend to abstract this from the user. The source of the Concentrator $abcCVX yield is just optimization of the two different places to park CVX.
Concentrator doing what it does best helps CLever a lot. The side benefit of the existence of $abcCVX is that it tightens the $clevCVX peg, which ultimately makes the CLever ecosystem more attractive.
Therefore, the CLever team has interest in incentivizing the operation. So CLever is happy to incentivize the existence of $abcCVX by distributing $CLEV through users who lock on its farming page. In this case, the yield is just classic token emissions, with $CLEV representing a claim on future CLever fees.
What Does It All Mean?
CLever as an entity exists for basically one singular purpose: accumulate as much CVX as possible. They are proving very successful:
They show little signs of slowing momentum. If CLever manages to keep rolling at the rate theyβve been going over the past week, they may have more CVX than even Frax Finance before 2024.
Accumulating more CVX may have been a luxury few could afford during the crappy 2022 market, but itβs a new fiscal year and Convex has been flexing strength of late.
The token once sat neck-and-neck with $CRV on the CoinGecko rankings, but after altcoins got dumped in the bear market, $CVX had sat around 120th while $CRV lately jumped into the 60s. CVX finally rejoined the top 100 over the past week though.
Crypto prices are wacky, but in the long run you might hope for some semblance of sanity. If you want to keep an eye on CVXβs valuation relative to $CRV, keep this dashboard bookmarked and do as you see fit.
Another great dashboard while weβre on the subject.
Enjoy!