Real USD Joins the Curve Gauge Controller: A Deep Dive Into the Benefits
The USDR-3CRV pool on Curve — where Tangible hosts its protocol-owned liquidity (POL) — has just been added to Curve gauge via a vote on Convex. The integration is active with the first bribing epoch going live April 6th. This development marks a key milestone in the project’s journey to establish itself as a major stablecoin within the DeFi ecosystem. In this article, we’ll delve deeper into the technical aspects of this integration, exploring how it benefits Real USD, Real USD investors and the broader DeFi ecosystem.
Understanding Curve and Convex
Before diving into the benefits of this integration, let’s briefly review Curve and Convex and their roles in the DeFi landscape.
Curve
Curve sits at the center of the stablecoin ecosystem in DeFi. As the name implies, its unique bonding curve allows for minimal slippage and better capital efficiency when exchanging assets that are closely pegged to each other. This makes Curve particularly useful for large stablecoin swaps.
Convex
Convex is a yield optimizer and liquidity aggregator built on top of Curve that aims to simplify and enhance user interactions with Curve pools, automating and maximizing yield farming strategies. Users deposit CRV or Curve LP tokens into Convex to earn the following:
- Curve trading fees
- Max CRV rewards for their LP, boosted using Convex’s veCRV supply
- Additional rewards in the form of CVX tokens
Because Convex controls the majority of CRV, they control the outcomes of Curve governance and the destination of Curve emissions. Through bribing Convex voters, projects can send additional CRV emissions to their pools, encouraging users to increase liquidity in these Curve LPs, growing token TVL while increasing price stability.
Real USD and the Curve Gauge Controller Integration
As noted above, the addition of USDR-3CRV to the Curve gauge controller means users that stake their Real USD Curve LP tokens on Convex will now earn much higher yield via CRV rewards. These new user benefits cascade positively up to the protocol level, with key advantages for users and the protocol.
Incentivized Liquidity
Real USD includes an extremely competitive native yield built into the token. With the inclusion of USDR in Curve’s gauge controller, large stablecoin holders now have even stronger incentives to farm Real USD. These new benefits will motivate high-value participants to provide liquidity for Real USD, a powerful accelerant to TVL.
Network Effects
Integrating into this ecosystem increases the protocol’s visibility with some of the most influential participants in the stablecoin market. Their participation and contributions to TVL are a key social proof, driving further growth.
Security and Stability
Curve is one of the most trusted DEXs in DeFi, with lower protocol risk (real and perceived) than many of the smaller AMMs. High valued users, uncomfortable yield farming USDR on Solidly forks, are more likely to farm on Curve and Convex.
As they participate, building larger and more robust liquidity, the price of Real USD becomes increasingly stable as there is enough liquidity to absorb larger trades and market fluctuations without causing excessive price slippage.
More liquidity on a safer DEX lowers the risk to farming large amounts of USDR, driving growth and adoption of Real USD, reinforcing the project’s position in the DeFi ecosystem.
Spinning the Flywheel of Growth
Real USD design has two killer features that accelerate the benefits of the Curve controller integration, leading to better outcomes for investors and the protocol.
First is a base, native yield built directly into the token. USDR is already supplying holders ~8.5% more yield than standard stablecoins, a massive value in the Curve ecosystem and incentive to adoption.
Second, Tangible can leverage its USDR protocol-owned liquidity (POL) on Curve to create a positive feedback loop, farming the POL and using that yield to bribe Convex voters to send additional CRV emissions to the USDR pool. The higher yield drives higher TVL, growing POL, which increases the bribe budget, leading back to higher yield and spinning a flywheel of growth for Real USD.
By farming the Curve POL on Convex for bribes, Tangible’s costs to maximize liquidity in this ecosystem are now drastically reduced. Combined with USDR’s native yield, it’s a sustainable strategy for both Tangible and users alike, fundamental for long term growth and adoption.
Conclusion
Real USD’s integration with Curve’s gauge controller marks a significant milestone in the project’s journey to becoming a leading stablecoin within the DeFi ecosystem. Tangible can now spin the growth flywheel, enhancing liquidity, stability and user yields within the most influential audience of stablecoin investors. This creates a robust and synergistic ecosystem that drives further growth and adoption of Real USD, haloing legitimacy and positive outcomes down to DeFi users of any level.
