Core items:
- Messari has noticed a drop in the betting momentum of Curve Finance.
- Curve Finance also saw incentives and earnings decline.
- Messari announced that the Liquid Stake protocols now use DEX liquidity pools for fast LST/ETH swaps.
coin issue
Messari, a leading platform for providing market intelligence, has noticed a drop in the deployment momentum of Curve Finance. Messari noted in a Twitter post that despite a high Total Value Locked (TVL), Curve Finance also saw incentives and yield fall.
Liquid staking protocols leverage DEX liquidity pools for fast LST/ETH swaps. @Curvefinance lost momentum with lower incentives and lower yields despite high TVL.
To fill this gap, specialized DEXs with lower capital requirements are becoming increasingly popular. pic.twitter.com/MKWX6XtITu
July 05, 2023
The market intelligence platform also revealed that liquid staking protocols are now using decentralized exchanges (DEX) liquidity pools for quick LST/ETH swaps. As a result, DEXs with lower capital requirements are growing in popularity.
A screenshot shared by Messari in the said tweet shows that the TVL of the stETH ETH pool yield on Curve Finance has dropped from over 1 million ETH to around 300,000 ETH from August 2022 to June 2023. During the same period, the digital asset’s annual pool and staking return fell from more than 7% to just over 2%.
The StETH application yield showed different results in the observation period. Messari data showed that the TVL of stETH ROI was over 500,000 ETH in August 2022. This value has increased slightly to around 600,000 ETH. Likewise, the annualized pool and stake return for the same digital asset increased from under 4% to just over 4% from August 2022 to June 2023.
Using data released by Messari, the market intelligence platform concluded that the reduction in the annual pool and stake yield on Liquid Staking Tokens (LST) is responsible for users churn from Curve Finance.
Curve Finance responded to Messari’s post with a tweet that linked to an older tweet. However, the content of the tweet was irretrievable at the time of writing as the author had already deleted it.
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