Crypto Market Weekly Recap - April Week2


Weekly recap of crypto market of Apr, week2. What road is Curve War leading us? What will happen if Terra's own Bitcoin bridge is done, like Do Kwon said, "we won't use Curve anymore once our own bridge is done."

Hello everyone and have a great weekend!

This week we will talk about Curve War, UST, Terra and others.

A few days ago the Terra community had a proposal to start a new stablecoin pool, 4pool, on Curve, targeting 3pool. 3pool has been the largest pool on Curve for a long time. 4pool plans to replace DAI with UST and FRAX, two algorithmic stablecoins.

In response to Terra's founder Do Kwon's earlier statement, "In my hand, DAI will die."

This is a simple matter, but also complex. In simple terms, after the launch of 4pool, in order to attract liquidity, the rewards of 4pool need to be attractive enough. So Terra and Frax will spend a lot of money to increase the rewards of 4pool. The specific way to increase the rewards is to spend money on Convex / Votium (and possibly other protocols in the future) to get more people to vote for 4pool.

One of the key conditions for this to work is to ... be RICH. Because it is necessary to control enough votes. Currently Terra and Frax are the top two holders of CVX, and both will also be working with Redacted Cartel, which will give them the top three CVX holders.

If you look at the price change of vlCVX's voting power on Votium, it was up to $0.56 in the last round (1 round every two weeks), and has been increasing every time in the past. BTW, if you bought CVX at $5 and delegated it to Votium, you should have made your cost back from just the bribe reward.

The debate about Terra, whether UST is Ponzi or something else doesn't really matter anymore. Another analysis of 4pool and UST can be seen at this link:

In addition, besides LUNA and UST, Waves and NEAR have done or plan to do similar things, using the same model to issue stablecoins. In addition to the above, there are two other things worth mentioning in today's article.

Do Kwon's intention is simple: once it has enough BTC, there is no way UST will fail. Or, if it does, it doesn't matter. By kidnapping BTC, the future of UST is the future of Crypto, and UST is not only kidnapping BTC, but also the entire industry.

Of course, this is Terra's plan, and no one knows yet how it will turn out and what kind of variables will emerge.

Terra has also purchased some AVAX and subsequently announced that it will issue UST on AVAX, and what I want to talk about here is the asset management of the protocol. For a while last year it was popular to talk about asset management for DAOs. Most projects have only their own coins in their treasury, so they are only worth in notional value with much less liquidity than most people think. Suppose there are five protocols, each of which has only its own coins at the beginning and is very vulnerable. But if each of the five protocols swaps a little bit of its own coin with the coins of the other protocols, each protocol appears to become "richer" and appears to be more resilient to market risk. But from outside, such swaps doesn't seem to make any sense.

Market Dynamics

Some of the major events that happened in Crypto in the past few days:

  • Terra co-founder Do Kwon tweeted that he has bought $230 million in $BTC. Buying Bitcoin in Do Kwon's eyes is as common but important as washing dishes and cleaning the house.
  • U.S. judge ordered the SEC to file proposed amendments to its case against Ripple by April 8. The lawsuit, which could end as soon as November of this year, comes as the SEC alleges Ripple used $XRP to raise $1.3 billion in unregistered digital asset securities.
  • Wallet maker Ledger plans to buy The Sandbox's LAND, which Ledger bought primarily to build educational games. To put it bluntly, it's both for promoting education for crypto newcomers and turning learners into potential users of their own.
  • NEAR Protocol closed $350 million in funding. To accelerate the decentralization of the ecosystem, NEAR's growth rate is obvious to everyone and has recently broken new highs.
  • Frax Finance plans to purchase billions of mainstream crypto as a stablecoin reserve. By acquiring native tokens on multiple chains as collateral, transactions denominated in $FRAX on these blockchains will be incentivized.
  • Axie Infinity parent company Sky Mavis closes $150 million in funding. To compensate for the loss of users affected by the hack, a hard lesson was learned.
  • Meta plans to introduce a virtual currency in its app. Called Zuck Bucks, it's somewhat similar to a gaming currency that can be used to incentivize creators on Instagram or reward people who make meaningful contributions in Facebook groups.

This week's daily news roundup is here, in English and Chinese.





I write about crypto and Web3, while trying to catch the wave of it shaping the future.

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