15/06 - The Grand Cascade
Exploring the latest LAVs and the Grand Curve Liquidation!
This transmission examines the latest liquidity allocation votes (LAVs) results and takes a look at yesterday’s Curve Liquidation.
Latest LAV results
The latest LAV went live on June 6th and concluded on June 11th. The newest distribution of each of the pools is as follows:
crvUSD POOL
USDC+crvUSD — 50.44%USDT+crvUSD — 49.56%
ETH POOL
WETH+frxETH — 35.11%ETH+stETH (ng) — 28.57%ETH+stETH — 25.92%ETH+frxETH — 10.40%
USDC POOL
USDC+crvUSD — 51.68%FRAX+USDC — 21.34%PYUSD+USDC — 16.86%DAI+USDC+USDT — 10.13%
USDT POOL
USDT+crvUSD — 82.66%DAI+USDC+USDT — 17.34%
FRAX POOL
FRAX+sDAI — 61.27%FRAX+USDC — 26.15%FRAX+PYUSD — 12.58%
The biggest gainer of these most recent LAVS is the USDC+crvUSD curve pool, netting a 1989 bps increase, taking most of those gains from PYUSD+USDC, which saw a weighty -13.41% decrease from the previous voting round.
The ETH+frxETH also saw a 12.20% drop from 22.6% to 10.40% of the vote. FRAX+USDC also lost 11.28% in the latest voting round, with the majority of that allocation deposited back into FRAX+sDAI.
TVL Growth & Current Yields
In the last fortnight, TVL has remained fairly flat, with a slight dip due to the value of ETH dropping around -12%.
Yields have also been pretty consistent, with a slight 1-2% movement in each Omnipool.
ETH and crvUSD TVL has increased between 12.21%—17.79% with USDC down -53.04% as well.
Curve Liquidation
Founder Michael Egorov's $100 million in loans, backed by Curve's CRV tokens, faced automatic liquidation on Thursday, causing the token's value to drop by up to 30% before a partial recovery.
This liquidation was triggered by an exploit of the UwU Lend protocol on Monday, which lost $20 million in a flash loan attack.
The attacker deposited stolen CRV tokens into Curve's lending platform and vanished, leaving a substantial debt.
Mich is clearly committed to enabling user withdrawals and improving Curve's security and lending mechanisms—personally paying off the bad debt on LlamaLend, that’s right, he personally paid off $10 Million in bad debt.
Despite these incidents, the Curve Team will continue to strengthen the Curve platform. Curve currently has over $2 billion in locked assets and is arguably the Godfather of DeFi. We have no doubt that this is just a blip in Curve’s journey. The team is clearly committed to building. Let’s not forget that crvUSD and LlamaLend are good tech.