March 28, 2022: Choose Violence π₯π₯
Convex War Resurgent Amidst $JPEG, $K3PR and $TOKE Action
Donβt worry about the titleβ¦ weβre not here to offer prosaic takes on tedious Hollywood infighting. The only βviolenceβ weβre chronicling is the sudden resurgence of the Convex Wars as the bull market picks up steam.
Risk-on confirmed? At the first sign of a market turnaround, protocols immediately began scooping up scarce $CVX tokens.
Letβs review some of the recent action.
JPEGβd
Among the most fun protocols to follow is JPEGβd, which is merging DeFi and NFTs.
JPEGβd is launching their initial product to allow users to borrow against their high value NFTs, (ie BAYC, rocks). This allows high net worth individuals the ability to put their jpegs to work for something besides flexing.
Theyβve been proceeding through their launch roadmap, which included an NFT drop to users who said the magic words. Their token is nearing a $100MM market cap, up nearly 50% since the resumption of the bull market.
Armed with something of a treasury, the team is making a big move into the Convex Wars for their first major governance action.
It appears likely the protocol will make the acquisition via direct OTC.
When launching a major project, there are advantages to teaming up with the best in the biz. Getting the opportunity to make such an OTC buy without slippage is just one such opportunity for the well-connected JPEGβd. JPEGβd advisors include, appropriately, two of the most bounteous cartoons in crypto. These two drawings are perhaps more likely to make you rich than any mere NFT.
The proposal is passing nearly unanimously. From the Discord:
Buying CVX has multiple benefits. It directs additional 3CRV liquidity to the pUSD pool making borrowers access to stables with lower slippage and depth. It increases farming rewards for LP providers of the pUSD/3CRV pool - raising the APY you can earn on NFTs supported by JPEGd. And in the future if the liquidity is deep enough the DAO can use it to vote for other pools that are most beneficial to tokenholders.-Mr.Pink
PUSD appears to be a new stablecoin that will be issued upon lending an NFT to JPEGβd, therefore the supply of Convex would be critical for attracting liquidity to this pool.
That said, we hope they also took notes from Stargateβs successful launch and consider launching a $JPEG Curve v2 pool, which would be a perfect fit for such a volatile token. Unless they have other plans for self-satisfaction.
KP3R
Andreβs cryptic on-again, off-again retirement remains a matter of much speculation. His KP3R project just rocketed up the Convex leaderboards, pacing second only to Terraβs accumulation over the past month.
The most likely explanation is the tokens are being acquired for the benefit of Fixed Forex, which is built heavily on Curveβs architecture.
The irony appreciated by several spectators is it was only a couple weeks back that the Solidly Wars were an actual thing people discussed.
Tokemak
Tokemak, just shy of its first birthday, has also gained dominance within DeFi since its launch. If youβre unfamiliar, hereβs how the team introduced its protocol:
βTokemak creates sustainable DeFi liquidity and capital efficient markets through a convenient decentralized market making protocol.β
Fans have further thoughts on what makes $TOKE great beyond their degen-friendly cashtag:
$TOKE announced participation in the Curve Wars a few months ago, and now appears to be making their move.
Rather than making a large purchase, theyβre sliding into the back door with the slyness of a Justin Sun sliding into your wifeβs DMs.
$TOKE previously deployed $300MM in liquidity across the Curve ecosystem for farming, which has since generated a sizable war chest they can exploit for participation in the Curve Wars.
Tokemak also deployed a large variety of Curve v1 factory pools several months back for many of their tokenized assets. Many of these pools have decent liquidity, but zero volume. We have to assume these pools play into their plans for world domination.
Even More
The three aforementioned protocols are just three standouts among several protocols making a bum rush for the last available $CVX.
Earlier this month $SILO bought the dip. This turned out to be a lucrative decision in the runup to their mainnet launch.
Wonderland also locked up their giant stack.
A handful of unknown addresses are also jumping into the game.
Convex
A last note on Convex β the protocol itself is entering the Curve Wars in a manner of speaking. Late last week they announced theyβll be offering $CVX incentives to holders of native veCRV.
The rationale and mechanics were explained on the highly active Convex Discord.
Convex since its launch has proven exquisitely designed and operated. Itβs no accident that protocols, yield farmers, and speculators are all jumping to Convex. Nobody can predict if the immediate future is bull or bear, but you can only bet against Convexβs long-term prospects at your own risk.
Disclaimers! Author is a CRV/CVX maxi and owns a JPEG Card NFT.