(1/8) wanted to share my thoughts on the future of $CORE so I want to cover why I have serious concerns with the new $wBTC LP and why I'm still bullish on the project long term. My tl;dr is that $CORE is a great replacement for $YFI in a portfolio as strong lower-risk growth

(2/8) My concern with $wBTC is going to be volume and subsequent APY, which the team is working to address. To explain, the wBTC and ETH LP pools do not share pooled fees. So wBTC LP fees come from trading volume on CORE/wBTC but not from volume on CORE/ETH

(3/8)This is a concern because the ETH LP collects fees from more than ETH because when a trading pair doesn’t have an LP, Uniswap defaults to route that trade through ETH or WETH. So the ETH LPs collect fees on volume between CORE and literally any other token *besides* wBTC

(4/8) I would expect the APY could be pretty low for wBTC LP holders initially. The devs are working on arbitrage strategies - when the price of $CORE (measured in USD) is different between $wBTC and $ETH, you can buy $CORE from 1 pool and sell it to the other pool for net profit

(5/8) While arbitrage is a great strategy, I don't expect it to begin to account for the volume of the CORE/ETH LP. This may be why we’ve seen whales sell off $CORE recently if they expect low APY from wBTC, but there’s catalysts which makes me feel $CORE is a long term buy

(6/8) Vaults are coming - you see clones claiming to add vaults onto $CORE's innovation, but CORE's first blog mentioned non-CORE vault strategies coming. They could focus strategies on buying from $wBTC LP, supporting volume and increasing price delta for arbitrage in one move

(7/8)The bullish undeniable fact is that even if the LGE brings in less volume initially, with each LGE more $CORE has been locked away forever, BTC will also be locked away forever ($CORE is becoming “harder”) and vaults + arb bots could eventually bring the LP consistent volume

(8/8) Last point is devs have great incentives built-in to continue bringing volume and value to $CORE via vaults, LP pairs etc. Never bet against high quality proven human capital. X 3 is one of the most innovative minds and highest velocity devs in DeFi, you're in good hands