Token Utility & Distribution - Assignment

Let’s read and understand the curve war article together.

What other projects out there have a similar strong game-theoretical model?
Let’s share and explore the markets together.

https://rekt.news/curve-wars/

Often simple and honest implementation of game theory works best.
Many people convolute proxies for the reason something happens…
e.g. hyper-inflationary tokens != lower prices.

Lower prices will only come to be if people sell, which has no direct causality to high inflation.
You could suggest a self-fulfilling prophecy where for the mere fact that because people expect price to dump in the instance of high inflation/minting, they will sell => lower price => and there’s grounds that price is dumping, so others sell.

1. Hex
With a highly contentious game-theory play, Hex has seen some astronomical gains.
People locking huge sums of funds for an average of 6+ years, yet many mock it and label it a ponzi.
It’s mission is simple: incentivize holders to slow down the velocity of funds so that people don’t dump the price.

2. Bitcoin
Our old mate bitcoin was even pretty revolutionary in its game-theory approach.
You could argue that its game theory is why we are here today - if it didn’t have sound game theory mechanics, then it may not have pumped 70,000x over a decade.
Maybe no one would care about it… Hard to say.
But I don’t remember seeing anything in the whitepaper about the halvenings.
Seems like they have played a nice part in helping price pump.

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I found this subject very difficult to understand as I have never used curve, convex or yearn finance. It would be helpful to actually see an actual demonstration on how to use these protocols…is a test net environment available for learning purposes?

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I didn’t really understand the curve / yearn mechanics and flow or interrelation of LP and yields generated in the scema. It would be great to go through the whole process step by step in most simple way. a) I by some stable coins (I understand that is need to provide the LP) than I got to curve a provide these where curve is doing - what ? I guess this must be a lending and borrowing mechanic but to not grasp the idea of curve in the slides presented. Will do some research on it later but now continue with course because I believe I need more fundamental backround understanding first.

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I agree I’ve been trying to learn for about 1 week now

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I experience the same issue, I believe the problem is that there is too much information packaged in one video, and in addition to that, there are a lot of things you are assumed to know already.

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DAOs come to mind which seem popular and using game theory.

I admit I too am confused about the whole curve war article. I understand that the game is revolving on the story that people are winning only gaining smaller rewards depending on the way they play the game. However, I’m extremely confused on how all these different projects ended up developing a war through the whole situation involving curve.

This is pretty heavy topic, i will also continue with the program and in between go through the documents provided.

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Hello everyone. I have a question. In the CurveDAO.PDF , in the first paragraph, second page

"balanceOf() / balanceOfAt() and totalSupply() / totalSupplyAt() ">

Could someone be kind and explain to me, to what does this refers to?

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It refers to the functions on the contract, balanceOf() probably is used to return the balance of an address, in the course Ethereum 101, the basics functions of a contract are explained fundamentally :nerd_face:

Carlos Z

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Thanks Carlos, I really forgot about them !!

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I think that another project we can talk about is POLKADOT (DOT). This project created a little bite of hype back in the “DeFi Summer”. But the real reason many people are interested in this project, is because of the “parachain auction”. This parachains will be given to the projects that manage to accumulate the most of their Token DOT. Every token DOT has the opportunity to vote inside the governance mechanism.
You could see Polkadot as a Blockchain that appends other blockchains into it.

I think this could be a very good study case

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Not entirely sure about what you are asking about exactly but if it’s about simply models which tries to bring in liquidity which can be used for farming then multiple ones of the newer dexes does that. Trader JOE does it for AVAX and I believe Sundae swap does it also for cardano.

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https://www.google.com/amp/s/www.coindesk.com/markets/2022/01/04/crv-extends-rally-as-curve-wars-intensify/%3FoutputType=amp

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I have found DeFi to be really in depth and confusing, this course has solidified much for me with using and understanding the protocols and platforms. I used Uniswap early when gas fees were low and now a bit stuck with transaction fees.

I bought and tried crv defi in Sept 2020 & early 21 but got myself so confused with it all, I am only just getting the confidence to play with defi again but been using Pancake Swap and Penguin Finance on BSC & AVAX that are much more fee friendly.

I will be getting more involved but really appreciate the test net advice.

Apart from the main ones like CRV, Aave, Dia, other mechanism I have looked at is HEX, I sat on the side lines due to FUD on the project owner.

Gamification of defi functions are getting more interesting as I learn more and now I can practice on test nets with more confidence

Thank you :slight_smile:

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I’m a bit confused as well, to be honest… But I’ll try to give this a go.

A big part of the curve war game-theory being put into play was the fact that players used endogenous incentives like offering extra ownership tokens to users who transact within the Yield protocol in order to incentivize market participants to use Yearn over Convex. This adds to the already existent incentive for users to keep their supply of Yearn (which optimizes Curve Yields) because of the hope that future inflation will increase the value of Yearn tokens that they own. This gave users many incentives for users to provide their stable coins to Yield. It is important to note that Convex did this eventually as well, but also bought additional Curve tokens to sort of starve out Yearn’s supply options. This ended up giving users an incentive to switch to curve solely due to the inflationary effect that buying up Curve tokens had for Convex.

If you look at the rise of bitcoin as a whole, by its very nature, the value proposition it provided to users was that it became an effective store of value as compared to any fiat currency and most financial instruments or funds. The game theory behind this is that as more and more people started buying bitcoin, the price of BTC inflated, and the overall net benefit to all owners (users) of bitcoin went up.

Someone please tell me if I’m at least close to the mark? :confused:

Some part of understandable but most of the article and part was very heavy to understand. Would be more suitable with a practicle demonstration of the same

MakerDAO’s MKR token is a deflationary token that helps govern the Dai credit system. It has 3 functions, governance, utility, and resource for recapitalization. Governance, the MKR token allows users to vote and create new proposal smart contracts. When closing a CDP smart contract a portion of the stability fee is paid in MKR. Resource for recapitalization, when debt is greater than the CDP, MKR is created to keep the platform from becoming insolvent.

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It seems to me that Rubic.Finance is creating something that might empower more protocols like Curve and Yearn to provide a wider service across all blockchains by bridging the massive gap. This might encourage other protocols to start up and not just compete, but maybe actually reinforce the strength of these networks by allowing more to be locked up. As Crypto begins to see a TMC over 3Trillion, i dont think this will be a war as much as it is a distribution of assets across a massive multi-blockchain ecosystem.

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