IdleRentier

[IdleRentier @IdleRentier]

@CurveCap Would be fun/depressing to find out how many dead hands are in these pots. There must be some.

Permanent value locks! 💎🔒💀
Heat death hodlers! ✨🌌☠️
Cold, dead hands, from which nothing can be pried... 💰💪🧟

[GMX 🫐 @GMX_IO]

Dear community, the Governance discussion about Multiplier Points has now moved to Snapshot. This vote uses Weighted Voting, allowing you to split your voting power among various options.

Please consider the options carefully, and cast your vote now:

🫐 https://t.co/Dn7A1W9flU

[IdleRentier @IdleRentier]

@peazyondrug @Cryptovestor77 @protocol_fx You have any analysis on that 100% CR timeline? Have just been lazily waiting for the mission accomplished announcement. :P

[IdleRentier @IdleRentier]

@lepidotteri @0xdev0 @CurveCap Had me in the first half.

[IdleRentier @IdleRentier]

@martenJe @SmallCapScience It drops to 6% & change this Aug. Still rough but not impossible to overcome. New developments should help on the top line, & if those bail out Mich too, fire sale scenario averted. Just wonder if LPers r going to stick around w/o ponzi emissions. LPing such low value "activity."

[IdleRentier @IdleRentier]

@WazzCrypto @GYotsuba Let us pray that they got to fully backed in the time since interest rates got off the mat.

[IdleRentier @IdleRentier]

@Marcgrijpink @DeFi_Made_Here @machibigbrother @CreamdotFinance The emissions schedule has been brutal. It might be tolerable come August. Top line growth might even be able to keep up by then.

[IdleRentier @IdleRentier]

@CurveCap Any news or speculation on $crvusd borrowing coming to Arbitrum anytime soon? (As in, minting natively on Arb?) Or is all expansion waiting on a wider launch of bring-your-own-collateral LLAMA lending?

[IdleRentier @IdleRentier]

@fourmoonsllc @ConvexFinance All true, just snapped on seeing the $CVX intrinsic value = 100% of its locked tokens value meme for the thousandth time. Pardon me, but the thread would be improved by not including it. Adieu.

[IdleRentier @IdleRentier]

Big fan of @ConvexFinance & all but for anyone new, plz don't fall for $CVX should = sum of its locked tokens marketing. CVX separates the voting power/value of the tkns from w/e remains. The market prices that basket of voting pwr at 72% of the total cost of the locked tkns.

[Four Moons @fourmoonsllc]

The @ConvexFinance bond from @0xC_Lever - A massive opportunity for CVX bulls. 🐂🐂🐂

💡@Ace_da_Book had a lightbulb moment when trying to quantify the extreme inefficiency in pricing $clevCVX, a synthetic derivative of $vlCVX that gets minted anytime someone takes a loan (up to 50%) against their $CVX deposited in the @0xC_Lever vault.

🍥Depositors have been selling their $clevCVX for other assets (oftentimes more $CVX to loop into the aforementioned vault), which has lead to an extreme imbalance in the @CurveFinance pool. Selling at a loss has created a tremendous opportunity for patient and bullish $CVX investors. How?

🔥$clevCVX can be deposited in the @0xC_Lever Furnace, which currently wields 2.89m $vlCVX power that compounds epochal yield into more $CVX. The $CVX gets distributed to Furnace depositors at a rate of 0.24% per day (87.6% per year). With only 931k clevCVX in the Furnace, these depositors are yielding 3X the rewards of an individual $vlCVX voter!

If you like $CVX (we do - a lot), $clevCVX is a very good way to acquire it at a tremendous discount through the Furnace burns.

💹This process is best defined as a bond, as written about previously: https://t.co/fI3Ry86GEz

The $clevCVX 'bond' is currently trading at a 26.5% discount to spot CVX and matures in rougly 1 year and 1 month. The price of $CVX is $3.02, but we believe is undervalued for several reasons:
1) $CVX intrinsic value is trading at a 28% discount thanks to research from @OnlyJousting ($4.17)
2) The reflexivity of DeFi yields and underlying assets' appreciating could push the $CVX price multiples higher in 8-13 months.

The $clevCVX Furnace burn will also continue to increase. Just last epoch, the burn rate jumped from 0.07% to 0.24% thanks to larger incentives from @PayPal and @AlchemixFi. The hype around @fraxfinance Fraxtal and liquid staking and restaking token pools should also lead to additional yield increases, which would lead to a 10th consecutive increase in epochal yield for $vlCVX voters.

Higher burn rates mean faster time to maturity for $CVX bonds. We estimate maturities will drop to 9 months by the end of Q1.

What about $clevCVX sellers? That only leads to faster time to maturity for Furnace depositors. Recall, the Furnace already yields 3X more than any single $vlCVX voter and 1 CVX = 1 CVX.

Who is this strategy for?
- Anyone bullish CVX can buy $clevCVX, deposit in the furnace, and get it at a ridiculously good price based on the discount and expectation of higher yields.
- More sophisticated traders could buy $clevCVX and deposit in the furnace, then short the $CVX perp while the bond matures in order to hedge out the principal risk while earning funding fees.

This thread wouldn't be complete without some Four Moons math. What is the ACTUAL discount on the $clevCVX bond?

$clevCVX discount of 25%
TTM of 9 months
CVX price target $9 by beginning of Q4, 2024

A $10,000 investment in $clevCVX would yield $37,500 by the start of Q4, or 400% APR.

The biggest risk is $CVX price going down, which can be hedged out using the short perp strategy and still yield discounted tokens.

Hope you enjoyed the short writeup, feel free to share and take a look at what the has built!

🌔🌔🌔🌔

[IdleRentier @IdleRentier]

But then you also have to consider $CVX's smol emissions and the ratios of $vlCVX vs. staked or circulating, etc. You can keep going from there.

[IdleRentier @IdleRentier]

@DeFi_Made_Here I mean you kicked off the whole discussion earlier with this meme goading the $GMX crowd, then you moved the goalposts to talk about single sided liquidity returns.

[IdleRentier @IdleRentier]

@Defimoneymatrix @CurveCap ☝️ He asks legit questions... and then comes to some strange or stretched or sponsored conclusions. 😑

[IdleRentier @IdleRentier]

@DeFi_Made_Here 🤔 You baited the $GMX 🫐 crowd in the original tweet & then don't include them in your 1 month (so who cares, admittedly) real world roundup.

I follow b/c you ask legit questions often enough but jfc the answers you subseq provide only lead me to ask myself why... 😑

[IdleRentier @IdleRentier]

Refuse to believe $veSDT holders voted for a retarded first come first serve distribution system for their "DAO's" allocation of $CVG airdrop. Jfc, what a joke. Pray tell how $veSDT has more than 100 actual owners.

Tbf, most DAOs are ino. 🤷‍♂️🤡

[Stake DAO @StakeDAOHQ]

$CVG airdrop from @Convergence_fi for the $veSDT holders.🐘👀

100 spots, first come first served.

[IdleRentier @IdleRentier]

@Peroephone @tztokchad I can't imagine taking the time to decipher all that just to discover all the ways I'm not going to get a return on investment in the token.

[IdleRentier @IdleRentier]

FWIW, Mich on revenue growth:
https://t.co/4ugLy9AgjH

[Michael Egorov @newmichwill]

@0xGeeGee I am getting around 20% of those with crv locked one or other way. To be paying off numbers you are quoting, fee rate should be 3x of what it is now.

Can borrow rates go down? Yes (naturally or involving tradfi). Can platform earnings go up 3x+? Yes, I am betting on it anyway

[IdleRentier @IdleRentier]

Spend some time looking at $CRV emissions schedule vs. $CRV lock % vs. $veCRV revenue growth.

[Jerry Karan @realarchitekt]

@newmichwill Any words of wisdom for $CRV holders & investors?

[IdleRentier @IdleRentier]

@Peroephone @tztokchad lmao jfc...
https://t.co/Hk4XBSxKSF

[Curve Finance @CurveFinance]

Thanks to crvUSD supply inflow to @arbitrum, borrow rates for crvUSD went really low, to incentivize new borrows