mev-toolkit/defi_and_trading/stablecoins/Curve.md

Curve

tl; dr

• Curve, whose unique feature is the low slippage in swapping, is a decentralised exchange (DEX) for stablecoins to swap pairs like USDT/UST or USDC/BUSD. 
• CRV is the native token, whose main utility is governance.
• People need to lock CRV to get veCRV to vote on decisions. The most important one is voting on allocation of rewards.
• Additionally, veCRV holders can vote on proposals and pool parameters.
• Monthly CRV unlocks from the release schedule and the trading fees generated on the platform are distributed to each pool's liquidity provider.

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curve liquid wrappers war

• veToken model allows users to lock CRV for up 4 years, receive admin fees (paid in stables), and allows them to vote for CRV emissions for the pool.
• protocols seeking liquidity have the option to bribe ve CRV holders to stream CRV emissions to their pools (nother source of revenue besides admin fees).
• since locking CRV for 4 years is not very attractive for holders, introduce liquid wrappers: cvxCRV, sdCRV, yCRV.
• liquid wrappers allow CRV holders to receive fees and/or bribes without locking it for 4 years and provide a chance to exit the position.
• trade-offs for liquid wrappers are: protocol fees, peg maintenance, and voting power.

cvxCRV

• by stacking cvxCRV, holders earn 3crv fees plus a share of 10% of the Convex LPs' boosted CRV earnings, plus CVX tokens.
• the bribe revenue (voting power which can be sold) is distributed among vote-locked CVX.
• the normal revenue from veCRV (fees + bribes) is split between cvxCRV and CVX.
• protocol fee: 0%
• voting power: cvxCRV does not offer voting power, nor does it share bribe revenue.
• losing the curve liquid wrapper war as it does not have voting or bribe revenues and a weak peg?

sdCRV

• sdCRV is distributing 3crv fees and keeping voting powers with stakers.
• voting power can be delegated to the StakeDAO, it combines market and OTC bribes in order to get the best return.
• users can access the bribes from palarding and votium.
• StakeDAO is not splitting the bribes and admin fees between sdCRV and native token, so staking APR is notably higher.
• Stakers are getting 3CRV, CRV, and bribes, converted into STD rewards.
• to get the highest APR, users have to boost it by locking the native token SDT.
• without veSDT boost, sdCRV stakers are getting a 0.62x boost on their voting power and can boost it up to 1.56x based on veSDT balance, and the total amount of veSDT stakers.
• protocol fee: 16%
• voting power: yCRV does not offer voting power, but shares the bribe revenue.
• StakeDAO is buying sdCRV with the bribe revenue when the peg is below 0.99 and distributing to the stakers.

yCRV

• staked yCRV offers the highest yield among all wrappers.
• however, the yield will go down and there are remaining rewards coming from the legacy yvBOOST donator contract.
• 1/4 of all yCrv is owned by the treasury boosting yield for all yCRV stakers.
• st-yCRV offers "set & forget" UX where the source of yield comes from: 1) admin fees (auto-compounded into more yCRV), 2) bribes (1 st-yCRV = 1 veCRV worth of voter power which will be sold on bribes market to further increase yield).
• unlike sdCRV, st-yCRV holders are giving up their voting power, so protocols can't use it to cast votes for Curve gauges.
• vl-yCRV is in the final stages of development, which will give voting power but remove fees and bribes in favor of st-yCRV.
• protocol fee: 10%
• voting power: sdCRV offers voting power and bribe revenue, but reduced in favor of veSDT stakers.
• winning the curve liquid wrappers war by offering the highest yield and the easiest UX?

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resources

• 10M Revenue Drain in 5 Months: MEV impact on Curve