On Curve's CRV emissions and liquidity incentives
Been diving deeper into Curve's mechanics lately, especially how the veCRV system influences CRV emissions and, by extension, the APRs we see on various pools. I understand the basic premise: lock CRV for veCRV, vote on gauges, direct emissions to certain pools. But I'm still trying to wrap my head around the second-order effects. Specifically, how much of a drag does a large token unlock event, or even just general market sentiment on CRV, actually have on the stability of those boosted APRs? Is it mostly priced in, or do we often see sudden drops in real yield once a significant amount of voting power shifts or expires? Just wondering how others model this when considering longer-term positions in pools that rely heavily on these incentives.
Ah, the ever-enticing rabbit hole of Curve's tokenomics. It's almost as if they designed it to be both brilliantly efficient and perfectly capable of giving one a mild headache when trying to map out all the cascading effects. Good luck with the second-order, I'm still trying to grasp the first-order on Tuesdays.