July 1, 2024: Slingshot Effect 🏹💫
What next, after mass lockening pushes $CRV wrappers to fully repeg
The past month has seen the mass repegging of all $CRV wrappers
All the major $CRV wrappers are above 99%.
The sudden surge of activity to lockers in late June has been massive… a few charts show off the story.
The overall lock rate had been subdued since last year’s hack, but in recent weeks has been returning with a vengeance.
And yet, the lockening continues…
What happens, though, when people keep locking, even though the wrappers are at peg. By design, the pegs can’t go over 100% — at least for very long.
Understudied is the potential effects the phenomenon of so much of $CRV activity happening in wrappers and its effect on token price…
In lean times, the peg of the wrappers takes a beating. Meanwhile, in bullish times, the liquid wrappers must first recharge, serving like a reservoir or a pressure release valve.
Or what about a slingshot… which builds up potential energy, until it gets suddenly released…
In total so far it comes to about 40MM $CRV locked over three weeks, representing a quarter of the yearly $CRV emissions.
July is the final month before a major emissions cut.
The upcoming August’s drop is more precipitous than most. A hefty chunk of core team yearly $CRV inflation disappears.
The effect is to bring overall $CRV inflation from 20% down to 6%, as 71.5% of the total supply will be emitted. The remainder will be slow burn for several centuries…
Here’s how it looks today
Versus middle of next month…