The summer will be bright green if the price of CRV can be used as an indication of how many common farming strategies will perform in the coming months.
CRV is up 4.6% on the day to $3.94 at the time of publication — part of a month-long rally carrying it 51.1% higher, per CoinGecko.
Most of the rally is heightened by tokenomics CRV’s. Also, in order to be granted access to additional protocol fees and boosted yield, the holders have the option to lock their tokens for a four year period in exchange for veCRV, CRV prices should drift upward as DeFi rallies as a top protocol.
However, veCRV holders have also been the recipients of a number of lucrative airdrops as of late. Ellipsis, an “authorized fork” of Curve on Binance Smart Chain (copying the protocol down to the frontend, which is reminiscent of Windows 98), airdropped an initial round of EPS tokens to veCRV holders. Likewise, Convex Finance, a forthcoming platform aiming to “simplify staking on Curve,” has also announced an airdrop to veCRV holders, though the details of the drop have not yet been released.
Airdrops can often be a tricky affair. Protocols want to attract governance token holders who will be loyal to the project and provide informed votes. While in many cases that means distributing to wallets that formerly and frequently interacted with a protocol, with upstart projects building on the backs of others, distribution parameters can instead be intended to attract an especially knowledgeable community — and veCRV holders fit the bill.