DeFi stands for decentralized finance and Curve is the world’s greatest evangelist in this regard. Of course, if Curve takes a move this week that affects the decentralized nature of DeFi, it will attract a lot of community attention. All it takes is one question: is it the right thing?
Curve cuts off Mochi Inu’s reward
Curve has removed the reward from the Mochi Inu Meme project (a model for minting stablecoins from collateral), which divided the community. Put simply, this is the battle for most of the CRV rewards through the emissions system.
Mochi Inu fired the opening shot when he bought and blocked more than 1 million CVX tokens from Convex Finance to boost the USDM / 3CRV pool to help secure revenue for its LPs.
Since manipulating the reward emission system in this way was considered unsafe, the Curve Emergency DAO immediately intervened and completely removed the reward from the Mochi Inu. They called Mochi Inu’s move a “government attack” on the curve.
On the contrary, there are many in the community who see the curve-cut of Mochi’s rewards as an attack on DeFi’s decentralization function. Many people believe that Curve is responsible for going beyond and using one’s powers.
However, many others called this a sensible move because of the uniqueness of this case.
Renowned analyst Adam Cochran suppose i think Curves decision is “not an attack on the decentralized nature”. He explains that, as in administration, not all users have technical know-how on a particular topic. Some actions require a faster response and the need to maintain safety and prevent abuse can be achieved in this way.
“So what Curve has done is not going to centralize the platform in any way,” concludes Adam Cochran.
In any case, Mochi was at best simply abusing a bug in the Curve emissions system. That particular glitch could be the impetus to fix it.
The only reason this became such a public incident is because Curve is the largest DeFi protocol with over $ 21 billion in TVL.
TVL on Curve. Protocol | Source: DeFi Lama
Is there an impact on CRV?
Fortunately, the ongoing war has not affected CRV in any way in the spot market. According to broader market signals, CRV is down 11.53% of its value this week. However, investors remained optimistic as buy orders were 50% higher than sell orders.
Since there are no other anomalies in participation, i.e. no investors dropping out of the market or the trading volume increasing due to sell orders, it is unlikely that the events in the DeFi area had a major impact on the spot market.
CRV. Buy and sell orders | Source: Intotheblock
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According to AMBCrypto