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Remember how some people believed the arrival of the Bitcoin ETFs meant that good ole’ fashioned crypto volatility was off the menu? Well… yesterday was a day.
Bitcoin briefly knocked against its all time high… then quickly giga-nuked over 10% before crawling back nearly all of the losses.
For traders juiced up on leverage, it was a horrendous day. A billion dollars in liquidations the worst we’ve seen in quite some time…
It was utter carnage everywhere in crypto. How did the Curve ecosystem fare?
Over $150MM of $crvUSD is borrowed on the market, and a portion of this sat in the range where could be at risk.
In recent weeks, user demand for leveraged longs had become so intense, the $crvUSD peg was starting to dip as a result.
Over a billion dollars worth of liquidations happened yesterday, but only a single $crvUSD user got got…
The one fellow who got hard liquidated was certainly sad, although when you set your bands to n=4 you may be in for a rough time…
Every other user was protected… that is to say… actual protection, not the variety peddled by Gary…
The sudden drawdown also had the effect of stabilizing $crvUSD price and borrow rate.
The max greed over hopes BTC would soar forever via the ETF action unwound swiftly. The $crvUSD peg restored, snapping borrow rates back to earth.
It would be a record setting day for the $crvUSD ecosystem.
When haters try to tell you that there’s not been any innovation in crypto, tell them they are flat out wrong. What you’re seeing is unique and beautiful,
It’s not the only such innovation in DeFi making life easier for the degen. If you’re interested in leverage, you might also check out f(x) Protocol.