The battle for attention, power and money in DeFi
The Curve Wars began at some point in 2020, and reached a hostile climax just recently as Terra USD tried to wipe out MakerDAO’s DAI stablecoin. For the past two years, DeFi protocols have sprung up to offer the best bribes in the hope that users will provide them with liquidity. But while the incentives are great and some people are making money, what might happen when the collective confidence drops and everyone leaves the party?
If you know about DeFi, you’ve probably heard about the Curve Wars. On one level, they’re extremely complicated and take lots of research and time to understand. At a more basic human level, they’re quite simple: there’s a big pot of money that people want to get their hands on.
But following the routes and methods that clever people have formulated in order to grab their share of the prize is no easy task. Below is a basic outline of how DeFi protocols are building one…