July 13, 2023: The Institutions 🏥🤪
Are the institutions buying or selling?
The institutions are buying?
It’s possible… on-chain we can often only guess what the institutions are doing.
We do know that $CRV is indeed rather scarce, with most of the supply locked and locks continuing fast.
What seems more likely is that certain other institutions are fleeing. It appears that Terra is unloading the massive stash it was accumulating to incentivize its 4pool.
The wallet is definitely linked to Terra, but it’s unclear whether it’s still controlled by Terra. At any rate, a few players that stashed CVX when times were bounteous didn’t survive the bear market, like Mochi and Terra. Their stash is being sold off progressively, and thus far appears to be absorbed by players who are interested in purchasing CVX.
The soft peg between CVX and CRV has been remarkably consistent throughout the bear market. For another example, since a few weeks ago when BadgerDAO opted to close their bveCVX vault, we saw the exodus mostly flow to a few whales who vote locked and Pirex, per DefiShaka:
JPEG’d for one is planning to acquire a major stake, so anybody hoping for a CVX death spiral may have to wait another day.
Terra had previously a big chunk (3% as last tracked by daocvx), but since Terra fell other players like JPEG’d have been competing. From the ashes of the Convex Wars, perhaps the Convex Wars may be ready to resume.
crvUSD
Once again, borrowing rates have returned to around 5%.
And, naturally, borrowing has dropped off.
At the moment the structure of $crvUSD allows you to leverage up to 9x. This is currently most readily done by looping manually, but it appears it’s going to be added to the UI soon.
It may not get much respect, but that $CRV is a heckuva token…
