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(1/8) I don& #39;t see influencers even acknowledging the existence of $CORE, but since this behemoth has reached #1 volume and number #7 liquidity on Uniswap in just 7 days, with just 30% less volume than ETH-USDC + ETH-USDT *COMBINED*, I& #39;m wanted to make a thread about the project
(2/8) All yield farming projects need value inputs. For $YFI -> $CRV, it’s selling $CRV on the open market. For $CORE, with it’s deflationary farming, yield comes from a self-contained system. It’s counterintuitive, but value input does not come from market buyers of $CORE
(3/8) The two value inputs are from a) people who lock their $ETH permanently in LP to farm yield and b) people who transact in $CORE (taxed at 1% per txn). This means $CORE value inputs come from liquidity, specifically the $ETH side and from transaction volume.
(4/8) Now $CORE has just dumped, from a high of $9.7K to a low of $5.3K. I expect a lot of people had a psychological exit of $10K. People front ran that level, causing a dip -> panic dump. Number of holding addresses dropped by 10% and price dropped over 40%.
(5/8) What about $CORE’s value inputs? This is what’s so crazy about the project. The dump added 10% more $CORE to LP just from people selling their $CORE for $ETH. And during the dump $ETH in the LP dropped by over 4,000
(6/8) But as of this morning as $CORE hit ATH in LP from selling (adding $CORE and removing $ETH), $ETH is also up 5,000 and also at an ATH from people continuing to lock $ETH liquidity. And volume is monstrous.
(7/8) So the value inputs have only *increased* making the yield for $CORE stakes hold steady even as price of the asset they’re farming dumps 40%. And remember, $ETH in the LP are how farmers cash out their yield. It’s now at ATH.
(8/8) So if price recovers to $9K, yield will be significantly higher and more sustainable long term than last time it was at $9K. Needless to say, while I don’t know how $CORE is going to end, I can say confidently it’s not ending anytime soon.
