September 25, 2023: When it Rains 🌧️☔
Liquity $LUSD under pressure, plus updates on Silo, $crvUSD, $cvxCRV, $CRV
Last week we looked into some interesting activity on a few pools, like $LUSD, $cvxCRV, $crvUSD, TriCRV, Base Rewards, Silo and much more.
September 22, 2023: TriCrypto Parameter Split Test 🔍📈
A power user suggested an idea for an occasional segment exploring some of the interesting stories told by trading activity in notable Curve pools. It’s a good idea, so today we’re going to walk through some recent interesting activity and narratives emerging from various Curve pools:
One weekend later, and each of these stories has some big updates.
Liquity
Last weekend, we surmised the $LUSD activity was due to users panicking about the BSC $LUSD implosion and accidentally selling $LUSD.
Turns out, there may be more to it than meets the eye. Over the past day, $LUSD took the top spot on the Curve pools by trading volume, as the $LUSD peg dipped to $0.99
It’s may be a bit difficult for some $LUSD stakers, who are collateralized at 160% but still watch their collateral sold without penalty.
What exactly is the cause of the sudden depeg? It appears to be a whale dumping.
Following the breadcrumbs, this user would convert their $LUSD to $USDT, send to another address which would send it to Binance.
Not to worry though, for Curve’s sake it’s all good. A bonus bit of alfa here for the bilingual…
$0.99 isn’t exactly the sort of depeg you can make a ton of money trading unless you’re trading size, but worth keeping this 1% bonus in mind if the stablecoin does repeg, given the above market rate rewards on its $crvUSD pairing.
Then gain, its near-clone $mkUSD is beating this yield by six percentage points. Tempting, but remember the buzzy new stablecoin also is not so battle-tested.
$crvUSD
A few more days of data, and the experiment to convert crvUSD/USDC pool to 2 bps may be just a short fad. A governance vote is in to revert it.
Note that this is not finalized, and in fact a matter for serious discussion.
Review, and vote your conscience.
Silo
Hey Silo… $60MM isn’t cool.
Almost $120MM half a day later… that’s cool.
Base Rewards
Base rewards resumed as expected, but this time with a twist. They are now earning rewards streaming in pure $crvUSD.
Also, there’s a few hiccups in actually claiming the rewards. The process for claiming them at the moment has to be done through Etherscan quite manually. It also requires a balance of $CRV be taken from your wallet and returned in the same transaction, so you have to have $CRV in your wallet to actually claim the rewards.
The full steps, which we’ve confirmed work, are listed out here.
Too much work? The market doesn’t seem to agree. The yields are pretty much in line with market rates. We imagine some other solution gets dreamed up soon if you don’t want to hassle with all this.
Meanwhile, TriCrypto on Base remains based…
cvxCRV
Last week we told you about a short-lived discount for cvxCRV. Hope you caught it!