A very clear demonstration that when it comes to pegged asset liquidity, @CurveFinance is the boss!
Since last week, Curve's deep $wstETH pools have maintained 60%+ dominance đđȘ
Meanwhile, @0xfluid dominance all but disappeared as most their leveraged LPs started unwinding their money-losing, leverage-looping strategies as wstETH peg began to shake.
Imo it's only a matter of time before a significant depeg (fud-induced or engineered by whales) on a major stablecoin or LST, rekts Fluid's so-called smart debt LPs and passive lendersâ ïž
A lot of crypto investors still haven't realized that Curve's deep liquidity is what keeps a lot of major #DeFi protocols solvent during times of market stress!
Many scoff @CredibleCrypto's predictions for $CRV, but when you realize how foundational Curve is to all of #DeFi and the trillions of capital flows that will be coming to Ethereum in the coming years.... those rosy price predictions start to appear a lot more reasonable and grounded in reality.
$USDe $stETH $GHO $fluid
đ©žwstETH Liquidity Crisis
1. Major ETH providers withdrew liquidity from AAVE
2. Farmers with wstETH/ETH looping positions are at loss and forced to sell at market, taking leveraged losses and driving down wstETH value
3. Arbitrageurs buy discounted wstETH and unwrap through Lido, pushing validator exit queue to $2.2B (11-day wait)
Concentrated liquidity pools (V3-style) with their narrow ranges can trigger cascading liquidations due to insufficient liquidity depth.
Without @CurveFinance's deep pools, the depeg could be far worse.
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