I have submitted a SIP with details regarding adding CRV to synthetix as a tradable synth. I have added some basic liquidity data, please be aware that DelphiDigital’s report mentions decentralized platforms have a larger risk of upwards price manipulation due to the AMM mechanism and there being no ceiling compared so these should be considered secondary to the centralized markets.
Centralized market data was collected from coingecko and decentralized market data was collected directly from Uniswap and Sushiswap.
I am having trouble pull requesting the SIP so I’ll add the main body of the request below if anyone wants to discuss it.
Adding the CRV token will enable the trading of CRV inside the synthetix ecosystem benefiting traders including dHedge who wish to include this token in their portfolio. It will also enable the creation of a Curve same-price pool of the native CRV token with sCRV. The lead developer of Curve, Michwill, has stated he has previously had large buyers express a desire for an on-chain method of acquiring CRV and this would likely drive volume via the Curve x Synthetix to Synthetix as a slippage free trade mechanism.
Further trading volume is likely to be generated as CRV has liquidity mining for the next 4 years and so there will be a steady flow of people looking to buy or sell large quantities of CRV which can be captured via this token and the mentioned curve pool.
Delphi Digital has not done an assessment of CRV’s available liquidity however Uniswap has an ETH/CRV pool with total liquidity $5.5million (half is CRV), Sushiswap also has an ETH/CRV pool with total liquidity of $10.9million (half is CRV again).
It is also listed on centralized exchanges Binance, Huobi, OKEx and Kraken. Seeing daily volume of 100, 62, 68, 2.8 mill on each respectively with -2% depth of 466,000 , 243,000, 429,000 and 55,000 and +2% depth of 265,000, 330,000, 356,000 and 158,000 respectively. These limits exceed Delphi Digitals 2% boundaries by 4x if compared to REN on Binance whilst nearly matching FIL’s -2/+2% boundaries. Both REN and FIL were deemed to have strong liquidity and approved for listing on Synthetix by Delphi Digital.
Currently synthswaps on Curve are mostly going in one direction from stablecoins/BTC into Synthetix that are then mostly being used to farm on Curve’s pools as sETH, sEUR or sBTC. This creates a pool imbalance that can disrupt the sUSD peg as sUSD is first bought from the sUSD pool then converted to the relevant synth. This reduces the balance of sUSD in the curve pool.
Adding sCRV should help this imbalance as it is likely people will wish to go from CRV > sCRV > sUSD > any stablecoin . This action will deposit sUSD in the curve pool and remove another stablecoin from it, helping the peg. The long term fix for this is to have a variety of sPools on Curve to even out directions and promote lots of different arbitrage.