- Announcement of the launch of a new service by ChatGPT to convert text into video
- Challenge for viewers to send the best video intro for a chance to earn 1 million squid points
- Discussion about airdrop news and snapshot of ESDT holders by Convergence
- Explanation of Convergence's boosting of voting power and incentives for SD token and liquidity providers
- Selection of Stakedow as the first protocol to integrate with Convergence due to its existing product and lack of boosting layer
- Mention of upcoming release of "only boost" feature by Stakedow
- Brief mention of governance and success of Convergence
- Mention of a purchase from Le Market, an unaffiliated source

- The speaker is discussing the need to set up a proper recording studio in a different room
- They talk about their custom llama print from Le Market and the requirement to own an NFT for it
- They discuss their governance strategy, including incentivizing LPs and issuing bonds
- The speaker mentions the dual token model and the next protocol they will be expanding to, which is convex.

- The idea is to create a liquid locker for CVX and FRAXLP, with the intention of maintaining a liquid locker per staking pool.
- The plan is to gradually plug FRAX pools to allow people to enjoy the maximum yield possible from FRAX LPs deposited on Convex.
- StackDAO will combine protocol on liquidity and liquid locker, with the goal of giving the highest APR for CVX Liquid Locker.
- Tangent is a side product being worked on, which is an exotic DEX built at TopGear Finance, powered by Curve Finance Oracle.
- The recent increase in Bitcoin price is attributed to ETF inflows, with over $2 billion in funds received in the past 4 days.
- The increase in Bitcoin price is expected to spill over to other cryptocurrencies, as it typically leads to more liquidity for altcoins.

- Discussion about ETF flows being bullish
- Optimistic rollups built on Bitcoin expected in 2024
- Stacks, a Bitcoin DeFi protocol, gaining hype and buzz
- Use of CurveUSD and TriCrypto pools for exposure to Bitcoin and Ethereum
- Financial analysis projecting growth of CurveUSD over the next 5 years
- Recent increase in CurveUSD supply attributed to bull market vibes and hefty WBTC mints

- The rates in the WBTC market are relatively low, but starting to creep upwards
- The price of CurveUSD has been slightly above peg, leading to more stability in price and potential for high revenue
- CurveUSD has proven to be a big success and responsible for more than half of the profits generated by Curve
- Prisma Finance has launched a separate stable coin called Ultra, backed by liquid restaking tokens
- There is competition between Prisma and Liquidity in the decentralized stablecoin wars
- Liquidity has announced their v2 innovation, which will be released in the fall

- The video discusses the separation of redemption and collateralization in Liquidity V2
- The new system aims to set better market rates for interest rates
- There is excitement about the new design and it will be further discussed on Monday
- The video also mentions the honoring of Satoshi Nakamoto by flying a flag over the U.S. Capitol
- The discussion also touches on the political divide and sentiment towards cryptocurrency
- The hosts encourage sharing the show and provide information about their community groups and points program

- ChatGPT has launched a new service to convert text into video
- Viewers can submit video intros for a chance to earn 1 million squid points
- Convergence announces airdrop news and snapshot of ESDT holders
- Convergence boosts voting power and offers incentives for SD token and liquidity providers
- Stakedow is the first protocol to integrate with Convergence
- Stakedow to release "only boost" feature
- Discussion of governance and success of Convergence
- Mention of a purchase from Le Market
- Need to set up a proper recording studio in a different room
- Governance strategy, dual token model, and expansion to convex protocol
- Stacks, a Bitcoin DeFi protocol, gaining hype and buzz
- Financial analysis projecting growth of CurveUSD over the next 5 years
- Prisma Finance has launched a separate stable coin called Ultra
- Liquidity V2 innovation to be released in the fall
- Honoring of Satoshi Nakamoto by flying a flag over the U.S. Capitol
- Discussion on political divide and sentiment towards cryptocurrency
- Encouragement to share the show and join community groups and points program.

Here to talk about the launch of Convergence!  

Links:
* https://cvg.finance/
* https://twitter.com/convergence_fi

We host livestreams every Friday on Leviathan News.

“Llama Parties” are ideal ways to socialize without needing to leave the comfort of your computer. All may join today’s chat live in the YouTube comments. Newsletter subscribers are invited to join the livestream itself (link below)!

Chapters

00:00 Introduction and Video Challenge
01:12 Airdrop News and Convergence Overview
03:02 Boosting Voting Power and Incentives
04:27 Choosing StakeDAO as the First Protocol
07:40 Governance and Incentives
09:08 Future Plans and OnlyBoost
10:46 Governance and Convergence Ecosystem
15:32 Reviewing the Bitcoin ETF and Coinbase
22:26 Stablecoin Wars and Prisma Finance
27:46 Liquid Restaking Tokens and Ultra Stablecoin
37:39 Financial Analysis of CurveUSD
44:17 Prisma Finance and Liquity V2
52:12 Separation of Collateralization and Redemption
53:10 Flag Flying in Honor of Satoshi Nakamoto
54:37 Political Divide on Cryptocurrency
56:15 Weekend Plans and Community Engagement
57:38 Wireshark and Sign Off

It's the first day of the rest of our lives, and we're thrilled that you're here with us making it the best day yet.

So we don't know how much longer this previous intro is going to be with us, because ChatGPT has announced that they're launching a new service to convert text into video.

So we would like to challenge all squids.

If you'd like to earn 1 million squid points, then send us the best possible video intro that you can.

There's been a ton of activity, of course, as always around the flywheel.

And 1 person we've been really interested in getting on a Llama Party to talk about both convergence, as well as the rest of the stuff on the entire planet is Wireshark.

The CEO and founder, is that the correct title?

And then, of course, we got our regular host extraordinaire, Sam.

So let's go ahead and talk about the first thing.

So I know that all of you are busy getting to work trying to get some Leviathan squid points, but there's other airdrop news about it seems.

Convergence has taken a snapshot of the ESDT holders.

So yeah, it has been quite a long time since we've planned to airdrop the SDT holder as StigDao is the first protocol integrated within Convergence, so it just makes sense to airdrop VSDT holders.

So it's going to be a locked airdrop, so eligible people will be able to claim a max-time locked position on Convergence.

And so far we've announced that we have 100 spots.

You need to own at least 1,000 VSDTs to be eligible.

But we may bring some changes to include a little bit more of Stackdow participant in the airdrop.

We talked about convergence a couple of months ago, and I kind of had an idea of it, but maybe we could run through just so we're all up to date here on what convergence is doing and how it fits in to the whole Curve ecosystem.

So long story short, we are the convex of Stakedow.

So I don't know if you're familiar with Stakedow, but basically they provide kind of the same service that convex provide at the top of the curve, I'm going to make it.

And they do it for curve, for balancer, for angle, urine, I mean every protocol that you can boost with VE token.

And the particularity is that with Stakedown Liquid Locker, you keep the voting power of your token.

So basically with SDCRV, which is the liquid locker for CRV, you keep your voting power.

And what you can do is that you can boost your voting power on the SD token if you own VESDT.

And so you can boost your voting power, but you can also boost the vote incentive that you're receiving for your SD token.

So what we do is that we basically socialize VSDT, just like Comeback socializes VCRV, And we spread the boost, the VSDT boost to all the users of the Convergence platform.

And thus we can, we boost reward for SD token, but also for liquidity providers, because on StackDAO, liquidity providers earn SDT.

If you have the SDT, you can boost your SDT earning on the LP position.

And so we boost both incentive earning for SD token and we boost SDT emission for liquidity providers.

So that's basically the main product of Convergence.

So we just provide more capital efficiency and we boost yield for staked DAO users.

I don't know if it was you posted or somebody posted, but it's like the guy on the podium who like grabs the chick and kisses the girl.

That's pretty significant seeing how the competitors of Yearn and Convex have been such dominant for last time to be able to come in and become such a large part of the ecosystem.

I think lastly, they've been the liquid locker who probably locked the more CRV in the short period of time probably.

We'd need to have a proper check though, but yeah, they're doing great.

Could you talk a bit about how it is you pick Stakedow of the protocols?

Because there's a lot of protocols out there that have VE tokenomics and Stakedow, for people who follow the Curve Wars obsessively like me, I'm super familiar with it, but the average listener maybe who's just busy farming on sidechains might not have heard of Stakedow.

So how do you come across them and why do you decide to stake over others?

Because it was the most logical decision from my point of view.

Stakedow is already working with a lot of protocol and by targeting Stakedow first, it gives us exposure to all the protocol that StackDAO integrated and since no 1 made this boosting layer for StackDAO except a concentrator with ASDCRV, It was like an obvious choice to pick Stakedow as the first protocol that we would integrate because it allows us to target multiple protocols and it allows us also to bring quite an interesting capital efficiency to the already existing product.

So it definitely made sense to start with Stakedow.

And also like, if we would have gone for protocol who already has liquid lockers and stuff, we would have been fighting against a competition that would have been pretty tough.

And so, yeah, going via StackDAO for the first 1 was kind of the easy choice, but also the most logical choice to start with.

And yeah, so the next 1 is with the convex.

And for convex, we will have a quite different model than the 1 which is needed to aggregate V token based protocol.

But yeah, Stakedow was definitely the most logical choice given the product they have and given the fact that no 1 made a boosting layer out of Stakedow.

So that was definitely the logical choice on our side.

Yeah, We talked about the capital efficiency of using like Yearn versus Convex versus Stakedow a while back.

And sometimes you get a better boost when you go somewhere else.

And the optimization isn't always the best by just sticking with the largest.

Yeah, and that's the old point of only boost.

So Stackdow will soon release only boost and basically only boost.

When you deposit curve LPs within StackDAO, only boost will route you through the layer that has the best boost.

And so depositing on StackDAO will ensure that you get the best boost out of convex and staked out always.

And this will be de facto integrated within convergence.

So on our hand, on convergence by depositing curve LPs, you'll be sure that you'll have the best CRV yield.

And on top of that, we boost as DT reward and we throw CVGA emission according to our gauge weight.

So in the end, we're still small, but we'll end up being the most efficient layer for Curve LP.

And that will benefit all the underlying protocol in the loop, so StackDAO and Convex.

So that will definitely be, I guess, a nice flywheel where everyone shakes hands and we all work together.

But Stakedia released like a governance post on the forum and it should be coming pretty soon.

right, because that's what they said back in August when they announced it.

They said September and I've been sitting here waiting.

I forgot that there's a little trademark thing.

So let's actually talk a bit about governance because now that Convergence is live, it seems to be doing quite well.

Disclosure, like I have a little bit of Convergence myself, and get some indirectly through my exposure to the llamas.

Quick shout out to the Le Market for this gorgeous.

This is what I ordered off of the Le Market, which is unaffiliated.

Because behind me is some paper blinds, so it wouldn't really fit.

I need to move to a different room in the house to get a proper recording studio set up.

A custom gorgeous llama provided courtesy of the Le Market.

Otherwise, they will not be willing to help you out.

They're not affiliated with the llamas, so don't be fooled.

But yeah, I appreciate the comments rolling in.

Anyway, let's talk about governance, because you are now involved in governance, right?

And Sam, can you take it off me and do it to my screenshot?

Yeah yeah so this is you asking to lobby the church so just go ahead and read it out that you you're officially incentivizing the ECRV voters and as you know Sam was talking about like you know governance it's always kind of like tricky once you actually get into the process of like, which pools do I incentivize, etc.

What have you found out through this process of like, actually trying to like go through governance and incentivize liquidity?

Yeah, so that's the first time we were doing this.

That's basically part of our protocol on liquidity strategy.

So long story short, the goal is to incentivize our LPs.

And since we own currently most of the liquidity, the idea is that the treasury will collect reward and then rewards will be distributed back to people who hold YSCVG, which is 1 of our locking primitives, which is YEL bearing that pays holders' wealth with Curve ecosystem assets every 3 months.

So that's basically part of the goal in our treasury management strategy, where we combine protocol on liquidity, but incentive to bring more to our pool, and then distribute back those rewards to token holders.

And if you want some in touch about the long term strategies, So basically, we have bonds also to grow the treasury and issue tokens.

We issue bonds instead of doing classic liquidity mining.

And basically, the idea is to incentivize voter until we have a big enough stack of governance token to vote also for our liquidity and still collect reward and distribute them back to token holders.

And if needed, we'll push a little bit more before the end of the period to be sure to get our vote.

So yeah, that's the first vote incentive round from us.

That's part of the strategy internally in the convergence governance.

We've voted a budget that basically allows us to spend 20k CVG weekly for incentives.

So this first round for us is like 20k for 4 weeks.

So we can still throw more according to what has been voted.

And so yeah, that's the rule, the strategy.

We may not handle being alone on the pool and collecting all the reward, obviously.

But still, as far as the treasury is getting paid for owning its liquidity, that's the goal behind this strategy.

Let's go ahead and take a look at these bonds you're talking about.

So I'm pulling up the convergence.finance website and...

If convex curve all open to burgers, how come no burgers for convergence?

Well, I'm not supposed to say that people can use VPN, but well, I guess I'm saying it anyway.

And yeah, there was some obligation from our legal officer.

And since we are, I mean, it's no secret that I'm based in France, so is the company.

And so we have like a pretty, I mean, you got to be in line with all the Directives of the regulators and stuff.

I will say that your lawyer is always going to defer to the worst possible scenarios.

Yeah, I prefer some people being mad than me in jail, right?

I guess at the end of the day, I prefer to be mad than have you in jail too.

Can we talk a bit about the kind of dual token or not dual token strategy.

You have actually have like now 3 tokens.

And part of this is because you also want to like split up protocol revenues, as well as governance functions within both Stakedow and then governance functions within Convergence.

Like Now that the Convergence token is live, what are the actions that you're seeing or activity around this three-token model?

So first of all, MGCVG is not active yet.

I mean, it obviously exists, but it's not usable yet as the metagovernance still didn't start.

So we'll communicate soon about that and the gauche vote on Stakedow will soon start.

But currently, so we have VECVG and YSCVG, which are usable.

And pretty surprisingly, we have more VECVG than YSCVG.

So what I was expecting, I was expecting more CVG being locked to YSCVG, which is the yield bearing primitive.

And especially since the APR is still ridiculously high, currently it's about 400% APR, which is 380%, sorry, which is quite huge.

But still, we have more CVG locks for VECVG than we have for YSCVG.

And so yeah, VECVG is live, you can vote on gauges and YSCVG, so the first reward distribution will occur in 10 weeks now.

So yeah, quite surprised that we've got more CVG locked for governance than for yield.

But that's a good thing because it doesn't dilute much the yield of wire CVG and it's still very attractive.

And yeah, if you guys want me to talk about the rationale behind this dual locking model, The idea was that most of people, I mean, retail people and small investors, usually they are not really interested within governance and all they want is basically the yield, while biggest entities such as, I don't know, it can be like funds, it can be protocol, it can be whatever, they may be more interested in governance and directing a mission and thus choose the governance primitive that we have.

So the goal with this design was to align as much players' interest as possible while making the old model so that more tokens get locked, obviously in theory.

And so that's why we've adopted this model where when you lock CVG, you can choose to lock for either governance or yield, but you can also look for BOS, because you can go 50-50, you can go 80-20, 100-0, 100, whatever, it's up to you.

And so that's why we have this dual token model, where we basically, yes, split the governance from the yield.

Can you give us any alpha as to which protocols you're going to be expanding to next or are you just focused on Stakedow?

I know when I was researching it and reading a lot of the threads, the company to launch, there was some speculation as to other protocols that would be kind of like ripe for this model.

This is like Official, not official, right?

Yeah, but like the model will be a bit different because we'll actually boost a convex yield And how we're gonna do this, we're gonna do it the following way.

But then what we're gonna do is that we're gonna create liquid lockers for FRAX LP's max locked on convex.

So it's gonna be a convex FRAX integration.

And basically on FRAX, you have 2 ways to boost your reward.

Either you have VFXS, but you can also lock your LP for up to 3 years.

And from what I've saw, people are not really inclined to lock LPs because it's kind of different than locking a governance token.

So yeah, the idea is to create a liquid locker for CVX and liquid locker for FRAXLP is max locked on convex.

So that's the idea and by doing this, so we need to maintain a liquid locker per staking pool.

So obviously we're not going to plug every FRAX pool right at the beginning.

And by doing this, we'll let people enjoying the max yield possible from FRAX LPs deposited on convex.

So that's how we intend to work the old stuff.

And then with that model, we will apply what we're doing with StackDAO, the combination of protocol on liquidity and liquid locker.

So basically for StackDAO, for example, what we're going to do is that we own most of the CVG, SDT, SDT liquidity.

And half of the reward formed with this liquidity will be sent back to the liquid locker, to the single site staked liquid locker.

So by owning the CVG, CVX, CVX LP, we'll collect reward.

Half of this reward will be sent back to CVG, CVX to boost the yield.

Then obviously we'll take some fees on the boosted LPs to distribute them back to CVG CVX.

I mean, on the paper, that's probably the model that will give the highest APR for CVX Liquid Locker.

MD, MD in the X livestream chat is asking about SD Wi-Fi, Wi-Fi.

Yep, just waiting for them to move GaucheVote on chain so they can have an incentive market.

And as soon as the Wi-Fi is boostable, It's going to be plugged in convergence and we're going to plug urine pools as well.

And that's 1 of the benefits of working with TechDAO, as I said earlier, is that we can target many protocols.

And our intent is to also integrate pools from Pendle and Yearn Finance first.

And then maybe we will extend to also Balancer and Yearn Extra.

But the focus right now for integrating LPs from other protocol than Curve, it's on Pendle and Yearn.

Anything else around the convergence ecosystem that we haven't gotten a chance to talk about or plug before we move on to talking about broader crypto stories?

The yields are significantly high right now.

I was just looking before we came on the episode.

But I was looking and right now, I believe it's like the V convergence token is getting like 300% APR.

Also a lot of the LPs as well too are getting pretty high APRs as well too.

Anything else you want to shout out about Convergence?

Maybe about Tangent because I saw that our fellow Robert O'Donnell is asking in the chat.

So yeah, Tangent is a side product we're working on and hopefully it will be live as soon as possible.

And if you guys have some questions about this 1, I can answer as well.

just so people know, I can't even access the Git book for Tangent.

So at least 1 of us here is not going to jail.

Yeah, Someone was able to read it, presumably not an American.

So that's a BEX built at TopGear Finance.

prefer not having access to dangerous ideas that could spread misinformation.

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Llama Party, feat. Wireshark of Convergence