Curve Wars concept
Overview
A rivalry among decentralised-finance protocols, known as the Curve Wars, centres on securing veCRV voting influence to steer Curve Finance's CRV token distributions toward their respective liquidity pools. Holders of CRV may lock their tokens for durations ranging from one week to four years, obtaining vote-escrowed CRV (veCRV) that determines weekly allocations of emissions across Curve's gauges. Convex Finance streamlined this process by pooling users' CRV into permanently locked veCRV, at its peak commanding a majority of veCRV voting power; this shifted the dynamic toward offering inducements, termed 'bribes', to vlCVX holders on platforms like Votium. Protocols such as Abracadabra allocated significant funds to direct emissions toward their own stablecoin pools.
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Sources
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Questions on the record
What is veCRV?
Vote-escrowed CRV is CRV locked for a period ranging from one week to four years. It grants the holder weekly voting rights over the allocation of Curve's CRV emissions among liquidity pools.
Why was Convex Finance central to the Curve Wars?
Convex Finance enabled users to deposit CRV without committing to a personal four-year lockup. It aggregated those deposits into veCRV and amassed more than half of all veCRV voting power, thereby acting as the decisive party in Curve gauge votes.
What are 'bribes' in this context?
Bribes are payments made by protocols to veCRV or vlCVX holders, typically through platforms such as Votium, to incentivise them to direct emissions votes toward the payer's pool. Abracadabra's MIM was a notable spender in this practice.