Oct. 11, 2021: #OccupyDeFi 🪄✨

How Abracadabra could disappear Convex's monopoly on Curve voting

In their greatest trick yet, @Danielesesta and the money magicians at Abracadabra.money could one day make Convex’s monopoly on Curve voting disappear.

With the protocol’s rapid growth, we’re seeing the wizardly ecosystem starting to intersect itself into the $CRV-$CVX flywheel in multiple ways.

Most recently, a proposed cauldron would allow for free borrowing of $MIM using $CRV, with 7.5% of the voting power accruing to Abracadabra.

Twitter avatar for @danielesestaDaniele 🧊🧙‍♂️ (🎩, 🎩) @danielesesta
1/ An
Abracadabra.money cauldron for $CRV that allows you to borrow $MIM for free. What is the catch? We lock 7.5% of those CRV into veCRV and issue a wrapper enchantedCRV. Abracadabra gets the voting power for those locked $veCRV and the profit sharing.abracadabra.moneyabracadabra.money

This would stand to cut into Convex’s overwhelming share of Curve voting power. However, such a cauldron would need to be whitelisted through a Curve governance vote, and Convex users may be disinclined to vote for such a proposal that could cut into its power.

Some voters have signalled they would nonetheless support the proposal as a matter of principle.

Should it come to a vote, it could be interesting to watch play out.

In a similar proposal, @Clonescody architects an intricate draft that looks to incentivize all stakeholders, including Abracadabra, Curve, Convex, and Votium

The proposal includes a chart that demonstrates just how intricate the flywheel has become:

Indeed, many of these protocols are already growing co-dependent. The Curve $MIM pool has been incredibly useful to the growth and adoption of $SPELL, as detailed by this thread.

The Convex ecosystem also deserves its fair share of credit.

And it may even be this relationship that ends up pushing Convex to other chains.

It’s an interesting twist of fate that $SPELL’s market cap is now actually higher than $CRV and $CVX.

SPELL is growing so fast that it’s given up trying to dethrone Maker, it’s now gunning for USDC.

Along the way, $SPELL has even flippened $CRV by market cap. Which raises the question, why bother even fighting for $CRV? Since all $CRV ever seems to do is go down in price, so why not just wait until it inevitably drops to zero…?

Just kidding, we don’t do price discussion here. We recommend you always make sure to talk with Gary Gensler before making any big life decisions.

One reason principles are top of mind these days is that all of these protocols are relatively united under what @danielesesta is promoting as the #OccupyDeFi movement, to “keep DeFi open, decentralised and censorship resistant.”

We certainly like the inclusiveness towards users forced to wear suits in their video as part of a strict dress code.

Should Abracadabra’s rapid ascent continue, we can only hope the spirit of #OccupyDeFi ensures that Abracadabra does not forget about the little protocols when it inevitably claws its way to #1 on the CoinGecko market cap list.


America is becoming ground zero in the #OccupyDeFi battle. The fight to keep cryptocurrency free from government overreach faces few threats greater than hostile US regulators.

See disclaimers as always. Author is staked in the CRV $MIM pool. This newsletter occasionally releases paid content to promote pro-crypto advocacy, specifically PAC DAO.

The PAC DAO team just released Action NFT 2, the second in a series by award winning BBC + Guardian cartoonist Rebecca Hendin. This release is capped at 300 copies, flat price of 0.05, and no refund mechanism. All proceeds from Action NFT 2 are dedicated towards the on-chain legislative scorecard project.

If you are interested in showing support for cryptocurrency check it out!