Read on Twitter
1/16
$CRV was the most anticipated DeFi project and the darling of yield farmers. Ultimately they made the worst possible choices and shattered significant trust in their team.
There are a few possibilities of what took place:
$CRV was the most anticipated DeFi project and the darling of yield farmers. Ultimately they made the worst possible choices and shattered significant trust in their team.
There are a few possibilities of what took place:
2/16
Option 1:
They had their contracts deployed. Those contracts have no authority over any of their existing contracts unless they delegate them to do so.
In this case they have no reason "adopt" the deployed contract.
Option 1:
They had their contracts deployed. Those contracts have no authority over any of their existing contracts unless they delegate them to do so.
In this case they have no reason "adopt" the deployed contract.
3/16
Option 2:
They had their contracts deployed and had left an insecure admin key somewhere so the delegation was forced.
This would be horrible for obvious reasons.
Option 2:
They had their contracts deployed and had left an insecure admin key somewhere so the delegation was forced.
This would be horrible for obvious reasons.
4/16
Option 3:
They deployed the contract as a community member for sake of trying to premine for themselves and their friends.
Which is sketchy and the antithesis of DeFi.
Option 3:
They deployed the contract as a community member for sake of trying to premine for themselves and their friends.
Which is sketchy and the antithesis of DeFi.
5/16
Option 4:
They deployed the contract via a community member as an attempt to show further decentralization as a legal maneuver.
Many people are praising them if this was the case thinking its legal genius.
But, there was a few hour period where they still told people
Option 4:
They deployed the contract via a community member as an attempt to show further decentralization as a legal maneuver.
Many people are praising them if this was the case thinking its legal genius.
But, there was a few hour period where they still told people
6/16
not to use the contracts. So if this was their method, then it was malicious and still a straight attempt at premining in that time.
not to use the contracts. So if this was their method, then it was malicious and still a straight attempt at premining in that time.
7/16
No one can force you to adopt a contract that is external to your existing infrastructure. That's not how blockchains work.
No one can force signing authority on to you.
No one can force you to adopt a contract that is external to your existing infrastructure. That's not how blockchains work.
No one can force signing authority on to you.
8/16
Right now, you or I could launch a fork of the $CRV DAO, tell it to accept the existing CRV LP tokens and have the exact same set up that this system had.
Nothing gives it any legitimacy if they team chooses to disavow it.
Right now, you or I could launch a fork of the $CRV DAO, tell it to accept the existing CRV LP tokens and have the exact same set up that this system had.
Nothing gives it any legitimacy if they team chooses to disavow it.
9/16
And if the governance was truly centralized, then the team would still need to delegate authority to that contract, and that is the defining point of something becoming a DAO - when you let a voting contract have control over an existing one. Which only an admin can do.
And if the governance was truly centralized, then the team would still need to delegate authority to that contract, and that is the defining point of something becoming a DAO - when you let a voting contract have control over an existing one. Which only an admin can do.
10/16
The facts here are sketch, someone apparently randomly spent 19.9 ETH ($8k) to deploy a contract they don't own, and just kind of hoped it would be accepted?
In the meantime, the $CRV team said not to use it but a bunch of big stakers found out about it right away?
The facts here are sketch, someone apparently randomly spent 19.9 ETH ($8k) to deploy a contract they don't own, and just kind of hoped it would be accepted?
In the meantime, the $CRV team said not to use it but a bunch of big stakers found out about it right away?
11/16
Then somehow both Matcha and Poloniex seemed to adopt and list the new token address before it was even announced as official?
Have you ever tried to get tokens listed (even in DEX interfaces?) let me tell you, it's hard and time consuming. It's not snap of the fingers.
Then somehow both Matcha and Poloniex seemed to adopt and list the new token address before it was even announced as official?
Have you ever tried to get tokens listed (even in DEX interfaces?) let me tell you, it's hard and time consuming. It's not snap of the fingers.
12/16
The $CRV team has doubled down on this narrative of "oh man we had no choice"
They did. But, this means they were either sloppy with keys, colluding for profit, or selling out to insiders in exchange for skirting regulation; and then lying about it.
The $CRV team has doubled down on this narrative of "oh man we had no choice"
They did. But, this means they were either sloppy with keys, colluding for profit, or selling out to insiders in exchange for skirting regulation; and then lying about it.
13/16
Look, if you arrange a community member to deploy your contract, that doesn't make you innocent.
Look through the $KIN deposition, the SEC will go through everything if they investigate you, if you are doing something to avoid regulation it defeats the purpose.
Look, if you arrange a community member to deploy your contract, that doesn't make you innocent.
Look through the $KIN deposition, the SEC will go through everything if they investigate you, if you are doing something to avoid regulation it defeats the purpose.
14/16
So we have a team that either makes bad impulse choices to validate a front-runner and reward pre-mining, stores keys incorrectly, wanted a pay day for them and their friends, or let people get a pay day for bad legal advice.
Either way, its bullshit.
So we have a team that either makes bad impulse choices to validate a front-runner and reward pre-mining, stores keys incorrectly, wanted a pay day for them and their friends, or let people get a pay day for bad legal advice.
Either way, its bullshit.
15/16
It is very rare that a project comes along and is placed on such a pillar by a community. This was entirely theirs to lose, and they lost it.
While I am not exactly sure which decision took place, I can safely say it was one of the worst in crypto's history.
It is very rare that a project comes along and is placed on such a pillar by a community. This was entirely theirs to lose, and they lost it.
While I am not exactly sure which decision took place, I can safely say it was one of the worst in crypto's history.
16/16
It doesn't matter where the price goes from here.
Someone sold out or made a hell of a bad call - and for me that's all it takes to wash my hands of it.
Because what does the next bad choice or contract issue cost you?
I'm not willing to take that bet.
It doesn't matter where the price goes from here.
Someone sold out or made a hell of a bad call - and for me that's all it takes to wash my hands of it.
Because what does the next bad choice or contract issue cost you?
I'm not willing to take that bet.
