Shiba Inu
Commonly thought of as just another meme coin has launched it’s own exchange and developed a considerable farming staking protocol with a short fixed lock in period. Interestingly like Hex that incentivizes not to dump, it’s community culture of hodling and voluntary burning, acts as a sort of brake rather than a extended hard lock in period to maintain price.
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I would love it if there was a deep dive on tokenomics and using several different coins as examples and case studies.
My understanding of the Curve wars is that users will always choose the protocol with the least fees and the one that will get them to most money. Convex is doing this by buying up all of Curve and
users ultimately get more money by staking their coins with Convex. If I were decide whether to use Yearn.Finance vs Convex Finance, I would go with Convex because I would get more bang for my buck, unless I was concerned about the security of the protocol and the team (I don’t know enough of about either).
Edit: and please go into explain MIM and all that jazz as well! Thank you!
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One major key point that I missed when trying to get a grasp of the Curve Wars is that CRV and veCRV are two different tokens. Crv is purchased and then locked away to get veCRV. VeCRV stands for vote escrowed CRV and the longer you lock away CRV the more veCRV you’ll receive. Then you can use this token to boost the amount you earn from the liquidity pool you have provided funds to. By having more veCRV you can collect fees between the 3 tokens traded in that same liquidity pool. Then the gauge system allows you to vote which pool will get CRV inflation and you can pick your pool to get the upper hand and drive more users to lock their token where you are earning.
This is a video I watched to get a better understanding https://youtu.be/xc6wKFimAZ0
And over here you can find a short walkthrough of using Curve. https://resources.curve.fi/faq/the-crv-token
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One thing I’m not understanding is the backscratcher vault that Yearn had. How were users able to withdraw tokens from what I understood, a perpetual smart contract that locks tokens forever?
CORE - CVAULT
core LP tokens are locked forever, they can not be split apart. Staking will generate CORE rewards. With a quantity of 10000 tokens, CORE is deflationary and extremely scarce.
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SushiSwap is another project with a strong game-theoretical model. With it being one of many AMM exchanges, SushiSwap adds a twist by providing increased rewards to those that participate more on the network; subsequently, it incentivizes these participants with SUSHI token. SUSHI is also a protocol that entitles its users to governance rights.
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I’m happy to read the comments and see that i’m not tht only one to have problems understanding this topic.
I found there is so much info packed in a 20 min video on a pretty complicated subject.
I think this section should be done an other way.
Keep up the good work !
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!! I took much information from: Rekt - Curve Wars and Top Things You Should Know About Curve (CRV) (publish0x.com) !!!
- I think that this thread would be more valuable to the students if we simply try to discuss about the proposal subject - Curve War -, the players, their roles, what they want to achieve instead of look out for things that may be similar to it. But i only read doubts (and no answer to the most of it - this is serious guys…);
That said, if you don’t mind, i would answer what i propose - selfish, i know, but i hope that this helps others and myself to have (or start to) a better understanding of the structure as a whole:
- I would say that we could break down the so called “Curve War” in two mainly aspects (aside the technical deep issues):
- A war for funding
- A war for influence (power)
So we must understand what does Curve do and why it’s interesting, and what i did understand is that:
-
It’s kind a sophisticated DEX - where you can trade pairs without necessarily uses ETH, wich means that you can trade all listed assets directly, reducing cost of transactions, fees and so on… Just for an example, Uniswap doesn’t offer this, you have always to use Ethereum in operations - i humbly ask that, if my knowledge about Uniswap is wrong, please forgive me, i am learning everything at the same time and maybe Uniswap offers the directly trade pair nowadays, sorry… i am trying to figure out and start an something like a SoK - systematization of knowledge - of this thing -
-
Curve is also a DAO (DESCENTRALIZED AUTONOMOUS ORGANIZATION - wich should mean, no controller, owner, … the network would manager the project) - and that’s a crucial point -, because of the stacking program: you can buy CRV - the native Curve token - and do things like:
-> Voting (remember, CURVE is a DAO, so it’s means something, not just a beautiful name) - holders can locking their CRV into a escrow and receives back veCRV (voting escrow CRV) tokens; this tokens allows the holder to vote on every issue that requires the participation in a DAO structure! The longer your CRV is locked, the higher will be your voting power!
Besides that, the veCRV it’s necessary if you want to propose something to the network!
Before we move foward, i would say - didn’t read about it - that must exist a mechanism that limits the amount of veCRV that one must possesses - or that adjusts the voting power through the time -, because otherwise this DAO woudn’t actually be a DAO, right? At sometime, someone or a group, like a Cartel, would have the control… and to give a spoiler in here - because i tend to be prolific - that’s what i understood about the whole schema of “Curve War”; nowadays it’s a war for influence in a cartel formed by Yearn, Convex and Stake DAO.
-> Staking: Holders can also staking their CRV, to receive trading fees from the Curve Protocol. In September 2020, 50% of all trading fees were collected and used to buy CRV which were then distributed to veCRV holders
-> Boosting: Curve liquity providers can boost their rewards on provided liquidity by vote locking their earned CRV to participate in the DAO and earn a boost of up to 2.5x. The longer you lock CRV for, the more your rewards will be boosted
Ok, so the thing is: Buy the token, lock it (stake) and forget it there… you will be able to vote, to win rewards and the longer you let your token locked, the higher is the reward that you’ll get. I really think that there’s no difference between lock it to vote or stake - by what i read i think that it’s all in the same package… - ; if are different possibilities, then it would become a more strategical and size matter decision (i would say)…
So, that’s it, Curve it’s a sophisticated DAO DEX that provides the market place for trading pairs and offers to the holders of it’s Tokens, the possibility of vote in any issue, to propose something and to get rewarded by simply lock it.
Ok i didn’t have a deep dive into yield farming aggregator protocols but they are fighting for funds… i know that i am oversimplifying here (or maybe i am totally wrong) but what they do is tell to people, hey, DeFi ecossystem it’s really automatized and complicated, and ok, you can have your own profits buying and maybe stacking something but i am able to, using technology - a code - seek for the best yields through this ecossystem and reward you if you let me do this…
So people will lock their assets with them and they will be able to try to farm yield.
About Curve, it’s interesting to note that, when people locks CRV through an yield farming protocol, it counts to his LP and gives to it more voting power through veCRV but we must remember that, only protocols that listed as “SmartWalletWhitelist” can use veCRV, and there are only three of it:
- Yearn
- Convex
- Stake DAO (but this one locks their CRVs into Convex)
So basically those projects controls Curve… i mean, i don’t know their voting power, but i would assume that yes, together those projects - if didn’t control yet - have a huge influence on Curve.
Sorry for write too much, i hope that’s understandable; i hope to help to clarify somethings and we can continue to debate…
but for me, pretty traditional finance spot in here… nothing new. Not even the “disguised complexity” of the subject but now, instead of economists we have developers.
Regards,
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Hi @thecil,
This is not about the Curve paper, sorry for posting it here 
Can we get Amadeo to have a Crypto Economics course? Hopefully, this gets out as soon as possible. A lot of crypto projects do not have sound economic principles that often lead to a dead project after the HYPE is gone. This causes the mentality to jump ship to the next new thing.
I understand the “hype” and why it is needed, but having sound fundamentals will allow your project to run after the hype fades.
Suggestions on the Course Content:
- Basic Economic Principles
- Game Theory (in-depth)
and maybe a bit of behavioral economics, since people are not really rational (really far from being rational) as to how economic models assume.
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I would ask the slides that Amadeo uses in the course…
it’s possible for us to receive a copy? Or download it somewhere in the site?
I preffer to use @CryptoXyz answer instead of open a new topic…
Tyvm!
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We could suggest him, but we do have a course which explain some of the fundamentals in economic and blockchain.
https://academy.moralis.io/courses/the-bitcoin-standard-course-history-of-money-and-bitcoin
Carlos Z
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Yeah, this course helps a lot, especially for those without economics of finance background 
highly suggested!
Still want to have a “Tokenomics” course - basically a course that looks forward into the future, cause we already have the “History” part here in Moralis
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And i must say that this course is amazing.
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Thank you so much for this write-up. Really helps a lot!!
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the token economics framework research section.
paper has been removed from SSRN at the request of the author, SSRN, or the rights holder.
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although you find confusing I like that you still making moves and sharing , gives me and others more confidence on our journey, it can be frightning pressing the enter button when money is involved.
so nice 1
thanks.
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I couldn’t think of a comparison,
even though I was well aware of the parachains auctions on polkadot,
I was looking at cote hard at the time.
Thanks for highlighting that 1
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I don’t know if I’ve understood your definition of ‘gametheory’ but I think XRP totally comes within this genre in that its trying to game every other coin by claiming that working within the current financial structure and working within the current regulations for financial assets and being the Mr Goody Two Shoes in the digital space will make it the eventual winner. Good Luck with that.
I just don’t get it. Why would Central Banks or banks for that matter pay Ripple 70 cents or whatever to exchange funds in and out of XRP to enjoy the benefit of digital transfers when they can just make their own coin for free, which Central Banks are currently developing.
Game, set and match to every other coin, especially BTC even with its performance issues even with Lightning, Monero with its privacy, or other pay coins with better speeds, and so on. Scalability will come with technological advancement just like it has with the internet and hardware.
No one is going to want XRP except XRP worshippers I reckon.
Various metaverse projects like The Sandbox are all about the game-theoretical model. As far as DeFi goes, the devs of the Elrond network seems to place a strong emphasis on gamification, where users are encouraged to select diverse strategies for saving, staking and providing liquidity depending on their risk tolerance, priorities and projections about what will have value in the future.
I had the same issue. I felt I was supposed to know more at this point and struggled to keep up with the information flow and the mechanics presented therein.