Curve Finance in recent years has become a major piece in the Defi ecosystem, contributing a large amount of TVL. This project also becoming the foundation for other protocols to take advantage of and develop on Curve itself. Curve has always been in the top 3 projects with the largest TVL volume ($5.68 billion - after Lido and MakerDAO) and is also the DEX with the largest TVL.
Currently, with the development of Defi, along with the LSD trend, the number of projects that provide liquidity and staking solution started to rise, but most of these protocols have nothing new with the mechanism.
Conic Finance - a project that provides liquidity for Curve - will change people's prespective about these projects. Using Omnipool - a special mechanism which helps this protocol provide better profit, deeper liquidity for both users and projects.
Does Conic Finance have the potential to develop in the future? Find out with Holdstation below.
What is Conic Finance?
Conic Finance is a platform designed for liquidity providers to easily diversify their investment on Curve. Overall, this is a liquidity solution for Curve.
Conic empowers investors of the $CRV and $CVX communities to participate in the optimization of liquidity funds on Curve pools. In other words, when users provide liquidity to Conic's liquidity pool, they will receive benefits equivalent to equally dividing capital among many liquidity pools on Curve. At the same time, the amount of LP tokens received is also automatically staked on Convex and received incentives from this project.
$CNC is the native token of conic Finance on Ethereum blockchain. This token can be staked from 4 to 8 months to receive $vlCNC, with the amount of $vlCNC received increasing over staking time.
Market Cap: $59.7 million
Circulating Supply: 3,808,811 $CNC
Total Supply: 5,600,000 $CNC
Maximum Supply : 10,000,000 $CNC
43% of circulating supply is currently locked.
Conic Finance is a community project, so it does not allocate tokens to Venture Capitals (VCs) and does not distribute tokens to the team.
Only the Conic community was the one who raised funds to develop the project and simultaneously performed the audit.
$CNC Token Allocation
Divided among vlCVX holders (Airdrop): 10%
Community Fund: 30%
Liquidity provider: 44%
AMM Stakers: 10%
It can be seen that this is a community-driven tokenomic without intervention from the development team. Therefore, this tokenomic is considered as fair. In addition, it also offers growth potential with reasonably distributed profits for participating investor groups, while still having airdrop programs to encourage new users.
All investors who own $vlCNC are eligible to vote in Conic DAO. By staking $CNC token (conic project token), investors get $vlCNC.
Voting rights will be used to vote on proposals related to:
- Conic project improvement proposal (CIP)
- Proposing to amend the principles in Curve(CAP)
As mentioned in the tokenomic, because it is a community project, governance rights will belong to the community that invests in Conic. This makes every vote count without being influenced by other forces like Team or VCs.
Features that makes Conic Finance stand out
Omnipool - Conic's special liquidity pool helps attract liquidity
Conic Finance introduces a new concept - Omnipool. This is an automatic liquidity pool, helping to divide investors' capital participating in Omipool into many different pools on Curve. Then the liquidity token (LP token) continues to be staked in Convex.
For example, a user deposits USDC into USDC Omnipool on Conic.
This amount of tokens will be divided in multiple liquidity pools on Curve (for example ETH-USDC, OP-USDC,...).
The amount of LP tokens received when providing liquidity to Curve will be staked on Convex.
Therefore, the Omnipool liquidity token will represent the participation of liquidity pools on the pools of $CRV.
What benefits does Conic Omnipool bring?
For liquidity providers
Proportional division of capital helps users to optimize the APR obtained when providing liquidity for an asset on Curve. Instead of having to trade off a low APR to reduce risk or vice versa, Conic Omnipool helps users to evenly distribute risk and profit in the pools, thereby improving the efficiency of providing liquidity in general.
At the same time, receiving $CNC tokens and participating in related activities (staking $CNC to receive $vlCNC) also helps users receive higher profits.
Conic also helps users only need to provide a single token (single-sided liquidity) to be able to participate in creating liquidity (instead of a pair as usual).
Users who own $vlCNC will also help manage capital more effectively when voting liquidity pools in Curve and related activities.
This also helps Curve itself attract and spread liquidity, avoiding the lack of liquidity that leads to price slippage of token pairs.
Conic also helps to expand the Curve ecosystem by attracting more users to use Curve and Convex when participating in the liquidity pool.
$CNC - Maximum price potential and project management
By staking Omnipool liquidity tokens, users will receive $CNC tokens. Since the supply is fixed, the more users, the lower the amount of $CNC paid, thereby increasing the token price. At the same time, all additional rewards earned from the Curve liquidity pool (e.g. $FXS, $SPELL) will be sold for $CNC (which continues to reward stakers).
Next, by staking $CNC holdings for 4 to 8 months, Conic users will receive $vlCNC (the longer staking time, the higher the amount of $vlCNC).
vlCNC can be used to:
- Participate in voting for liquidity pools
- Vote for whitelist and blacklist on Curve
- Vote on content to be added to the platform
- Proposal to change protocol
- Make referral fee
Conic's current growth potential
Going along with the LSD trend when the current cash flow is pouring into many projects such as Lido, Rocketpool, being able to mine deeper when providing liquidity will help users diversify their investment options and get profits. Better productivity, more efficient cash flow management. This is also the goal that Conic aims for.
Curve and Convex growth potential
The correlation between the prices of Curve, Convex and Conic, with Curve recording a growth of more than 50% in the last 3 months, accompanied by Convex's $CVX token showing similar signs of increase (50%) is also motivation for Conic to maximize the potential of a liquidity-providing protocol.
Trust from senior investors
In his tweet, Adam Cochan - investor and veteran developer in Defi and Crypto also expressed his interest in Conic.
At the same time, according to onchain data, it can be seen that Curve employees and Adam Cochan participate and hold a lot of $CNC tokens.
Data on-chain from The Data Nerd
Regarding the Smart Money wallet, Nerd discovered that the following two wallets continued to get $CNC even though they had already taken substantial profits.
First, wallet 0x37dc started buying on Uniswap on November 10 (at around $1.98), then continued to get more in December and January 2023.
After taking partial profits on local top on January 19 (the price zone of $8), the wallet continued to collect more on February 1 and February 2 (the local bottom with the price range of $6.9 - $7.1).
So far the wallet is holding 12.7K CNC ($115K)
Second, the 0x09c wallet has a much longer CNC transactions date than the 0x37dc wallet above, with the first purchase date being September 6, 2022, at a price of $0.54.
So far, even though the unrealized gain has reached close to x15, the wallet continues to pool and provide liquidity on Uniswap. The wallet currently holds 14.5K CNC ($131K)
People should also pay attention to this Whale wallet, with a total balance of over 3 million dollars.
Another Smart Money wallet has gathered strongly since April 2022, as well as received 15K from Initial Distribution wallet, so it could be Private Investors. This wallet currently holds 78K CNC ($711K)
Nerd also discovered a newly created whale wallet to buy CNC.
The new 0x0d66 wallet first received ETH as gas 5 days ago, then bought 40K CNC ($364K) on Uniswap and provided liquidity.
In general, Nerd rated Conic Finance's onchain is quite positively when Smart Money, despite being very profitable, continued to diamond hands, showing great confidence in the project.
Above is the information Holdstation learned from the Conic Finance project. Can this project be further developed in the future? Holdstation will update readers with relevant information as soon as possible.