$60m worth of credit - For or Against? Huge proposal from @yieldbasis to @CurveFinance holders for a $60m crvUSD credit line to create the first 3 BTC pools (wBTC, cbBTC and tBTC). These pools will have a $10m cap with extra capital kept in case the price of BTC increases (in which case more is borrowed to maintain the 2x LP:Debt ratio). Seeing a lot of discussions with the following main points: - Economic risks for Curve with crvUSD backing (technically the credit can only be used when there is backing since users would need to deposit BTC and only then the credit is used) - Exploit risk and what that leaves for Curve with bad debt - Transparency around incentives Curve DAO are getting 7.5% of the $YB supply + the on going value from new pools and therefore trading fees for veCRV. It's in my interest for Yield Basis to succeed and will be routing for them, one of the most interesting innovations in AMM design this year. Let's see where we are in 6 days time when the voting...
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