There is obviously heavy debate on the valuation of CRV

Question

There is obviously heavy debate on the valuation of CRV

(primarily by @OxHamz), with main arguments that the fee revenues can't support the high emissions and thus it's an uphill battle for token holders. @samkazemian you are clearly bullish on CRV (and CVX) - do you have thoughts on this topic?

#cryptocurrency #english #frax

0

09.06.2022

7 ответов

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DS

bear case is based on bear market, lack of velocity, etc. - makes complete sense in this market. but it doesn't take into account notion that Curve TVL, velocity, etc. can 10x in the next 2-3 years, I don't think. Curve just isn't all that hot in a bear market, but then again few things are, no?

0

09.06.2022

Sam Kazemian ¤⛓️¤

Both sides make great points so I tend to agree generally in the middle. CRV emission is indeed an expense in classical accounting. Permalocked CRV is also equivalent to burning the token in exchange for perpetual cash flow/dividends. I tend to believe that something like fraxbp+frax_veCRVpermalocker can "complete" the Curve ecosystem by creating a symbiotic relationship where Curve can recapture a lot of the value it generates through being able to issue its own stablecoin to hypothecate the stability it creates. Which is exactly what we hope to do. FRAX will own a piece of Curve through veCRV and our veCRV permalocker essentially lets Curve capture value back into the CRV token proportional to FRAX supply.

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09.06.2022

DS

Sam Kazemian ¤⛓️¤
Both sides make great points so I tend to agree ge...

Seems like the super long tail emissions are a core part of the concern, since dilution will remain a constant problem for quite some. yet strangely it's also a feature in that creates a need to remain locked if you plan to stay in and participate. these staking mechanisms that cause holders to NOT be punished are pretty unique mechanisms and should probably be judged on a longer timeline than 18 months. 🙂

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09.06.2022

Westwood

DS
Seems like the super long tail emissions are a cor...

Well hopefully the protocol is super profitable by then and it doesn’t really matter right?

0

09.06.2022

DS

Westwood
Well hopefully the protocol is super profitable by...

yeah, that is the idea. the dilution is just a form of subsidization. if Frax were to recapture enough yield to offset the dilution/price action, then it's static. but the business of Curve has to justify itself organically without the emissions. there needs to be a point where taking away the punchbowl doesn't negate the value/point of owning Curve, and right now that doesn't exist.

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09.06.2022

James Glasscock | Reserve.org

DS
bear case is based on bear market, lack of velocit...

is there a good dashboard to see Curve protocol profitability?

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10.06.2022

Liscivia · Accepted Answer

Liscivia

I think, liquidity depth and peg stability mist be taken into consideration when talking about the CRV valuation

0

09.06.2022

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There is obviously heavy debate on the valuation of CRV

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