Oct. 14, 2021: Convex Wars: A New Hope 🪖💥

Badger, Abracadabra, and Blocktower battle for the future of finance

War. War never changes.

Twitter avatar for @LibertasBellaLibertas Bella (☀️,🧙‍♂️,🐸) @LibertasBella
@CurveCap you’ll need a v2 to your excellent “The Curve Wars” piece about the new war for $CVX happening;
curve.substack.com/p/june-1-2021-… Badger, Abra, and the VCs are all out to get their mitts on as much of that Convex voting power as possible. @crypto_condom @DefiMoon https://t.co/G1volV8Tkd

₿adgerDAO 🦡 @BadgerDAO

Things are moving very fast. BadgerDAO is on a mission to collect every Convex vote we can get our paws on so we can boost the rewards on our Bitcoin vaults and pass along even better yields to users. Read how ➡️https://t.co/taXkoAbNR9 🧵

The battlefront has shifted though. Just this summer, we thought the fight for veCRV dominance was the war to end all wars. Yet when you zoom out, it was merely a single battle.

Convex won the Curve Wars. For its spoils, it became the new battlefront. This new war is hot.

Who are the belligerents competing for the future of finance?

Badger

Motive:

A few weeks ago, Bitcoin yields plummeted on Curve. Among all the bribe wars, nobody was fighting for Bitcoin.

Badger is the de facto home of Bitcoin wrapped into Ethereum. Badger identified this as an existential threat. The badgers took it seriously.

Tactics:

Badger passed their proposal overwhelmingly. They locked 886K CVX with 123K delegated to Badger.

Competing in the Convex wars requires higher level mathematics. Fortunately DeFi tends to attract the sharpest minds.

Now that Badger has some voting power, the internal wars begin for how best to deploy this might. They haven’t even won the war yet the next battle is starting from within.

Abracadabra

Motive

Abracadabra is obsessed with building a new financial ecosystem. The frog nation has dreams of pushing $SPELL token all the way to $1 and turning their Magic Internet Money ($MIM) into real money.

Earlier this week we dove into Abracadabra’s ambitions as they relate to the Curve flywheel. The signal vote quickly popped up with overwhelming support.

Tactics

The upshot is 5% of weekly protocol fees are earmarked to buying and locking CVX.

We are lucky to live in a world where bribes are flowing freely through the flywheel.

In particular, this positions $SPELL for exciting growth when Curve V2 pools eventually open up.

Blocktower Capital

Motive

Blocktower is a private VC megalith operating in the crypto space with over $140MM in assets. They decided to make a big play for $CVX. As to their motive, we can only speculate.

They have never tweeted from their Twitter account. Their Substack hasn’t published an update since May.

They are primarily speaking with their dollars. Based on their based actions, we can speculate they ran the math and are interested in Convex purely from a numbers perspective.

Tactics

At this point, Blocktower is to Convex as Michael Saylor is to Bitcoin. They just keep making major purchases like clockwork whatever the price may do.

They are so eager they created battlebots to fight the war for them.

Over $8.5MM and counting.

Although it looks as though they may be pausing to regroup?

Other Mercenaries

There may even be other combatants. Not sure if we ever identified who made this casual purchase.

If you identify other players in the Convex Wars left out, drop them in the comments and we’ll update here.

The Winner

Big money has committed to fighting furiously over this. The battle may be bloody, but we know for sure there will be at least one clear winner. Investors around the CRV/CVX flywheel.

It’s a hot war, but it may be a short one. $CVX supply is incredibly limited.

Never forget the spoils of this war trickle down from $CVX to $CRV.

And @0xG3nsl3r will be furious, but this is one of those rare opportunities for generational wealth creation available to retail investors.

If you’re starting now you may be later than somebody who started yesterday. Yet you’re still insanely early. Only a small number of people have ever interacted with DeFi.

As the Convex Wars rage, all of us must play our part. Will you be a spectator or a participant?


Read Disclaimers. Author is a CRV/CVX maxi, has a stake in $MIM/$SPELL.