June 13, 2023: Flash FUD 🌊🐋
Why the sudden influx of $CRV FUD?
So much good news from around the flywheel lately.
Happy Birthday to Convex!
Lending markets warm to Curve LP tokens, including Silo…
…and Gearbox…
Plus an important vote…
Useful because it begins flowing the ever-growing $crvUSD fees to veCRV lockers
If you looked at it in a vacuum, you might mistakenly assume everybody is bullish. However…
FUD-slinging
Since the launch of $crvUSD, we’ve seen a surprising amount of FUD being tossed in the direction of Curve.
We don’t toss the term “FUD” around lightly. As a publication, we’ve given ample time to covering attacks against Curve. We likely publish more critiques of Curve than the typical fanzine. Yet the attacks we’ve seen lately appear to be sloppy and in bad faith.
In particular, lately the FUD-sters have congealed on one particular attack vector: Mich’s sizeable and previously uncontroversial $CRV loan on Aave.
To briefly recap the long story from Mich’s underreported POV: sensing the sharks were circling, he splashed the pools over at Aave.
When whales splash, it always causes some ripples. This sudden movement spiked interest rates as noted in the screenshot above.
It also suddenly reminded bad faith critics that the position existed in the first place.
Then Gauntlet, which recommends safety parameters to Aave, suggested to freeze $CRV as a collateral on V2 out of the blue.
The FUD-sters are trying to draw parallels to last year’s failed Melville-esque whale hunt, in which Avi Eisenberg fruitlessly went chasing after Mich’s position in a roundabout attack on the Aave protocol.
Could whale hunters successfully chase down this position while Mich is away from keyboard? Well, anything is possible of course. It’s tautologically true that any collateral in a lending protocol is at risk, and therefore the very existence of lending protocols will always inspire trepidation. If the very existence of lending protocols makes you squeamish, you probably shouldn’t be in DeFi.
If you find yourself losing sleep over the possibility of heavy liquidations, you might ask yourself why the smart observers are laughing this off as an ignorant concern.
We’re quite serious when we say DeFi isn’t for everybody. It’s super risky and unfriendly to smol bagholders. Go and hunt down a registered financial advisor, and remember never to take financial advice from handsome randos on the internet.