We all know that crypto is the future of Finance it's the future it's the future And this is why it's surprising that the Decentralized finance Niche has been Almost completely forgotten since 2021 You see it is the actual future of Finance not surprisingly people are Starting to remember this ever since Defi cryptos started rallying and one of These has been a a decentralized lending And borrowing protocol that could Revolutionize finan as we know it today We're going to tell you everything you Need to know about a including what it's Been up to what it's planning and how High its RV token could go during this Bull market stay Tuned first things first nothing in this Video is financial advice it's purely Educational content intended to inform You about arv and I'll also note that at The time of shooting this video nobody On Team coin Bureau holds RV in their Crypto port folios nor is this video Sponsored in any way but that should go Without saying now if you want to know Which cryptos we're holding and which Ones we're personally considering then Become a member of the coin Bureau Club Besides our portfolios and watch lists Members get weekly reviews of small cap Altcoins they vote on daily crypto Alpha And realtime insights in the members Discord you can learn more using the
Link in the description now the last Time we covered RV was over over 2 years Ago specifically in July 2022 so it goes Without saying that a lot has happened Since then and we won't possibly be able To cover it all in this video we also Won't be going into the history of arv Or exactly how its protocol works as That was covered in that video so we Highly encourage you to watch it the Link will be down below anywh who Shortly after our last RV update the RV Da approved a proposal to launch go a Decentralized stable coin minted using Collateral deposited into arv for Context Terra us collapsed in May 2022 And given that us was also a Decentralized stable coin not everyone Was so excited about go this is probably Why go didn't launch until July 2023 When crypto market conditions were Starting to improve and most of the uh Skeletons had been shaken out of the Closet so to speak unfortunately go had A rough start when it launched not much Was minted and it struggled to maintain That dollar Peg fortunately though Go's Circulating supply has doubled in recent Months and it finally seems to be Holding that pig in fact it's been Trading above its pck which suggests That there's lots of demand for go Coming from somewhere after poking Around the RV protocol we found the
Reason why you see at the time of Shooting you can earn an interest rate Of around 15% for staking go on Ave on The flip side the interest rate for Borrowing go is currently around 5% for Regular borrowers and less than 4% for Those staking a this means that you can Earn 10% for borrowing and staking go Now we're not sure how sustainable this Is but it seems another demand driver For go is coming again more on that Later before that back to the summer of 2022 now in addition to approving the go Stable coin the RV da approved a Proposal to temporarily pause lending And borrowing activities ahead of the Merge for reference the merge was when Ethereum transitioned from a proof of Work consensus mechanism to a proof of Stake consensus mechanism and it Happened in September 2022 two months Later the arve D temporarily paused Lending and borrowing again when Abraham Eisenberger the infamous mango markets Exploiter also tried to exploit arve the Fact that arve survived this attack Underscored its resilience but it also Highlighted how much the da can control The protocol this was highlighted again In January 2023 when the RV da purchased Eisenberg's remaining debts after his Failed attack but it seems this news was Overshadowed by the launch of RV V3 on Ethereum to clarify RV V3 launched on
Evm chains in March 2022 but it didn't Launch on ethereum until January 20 23 The arve Di's interventions continued in February 2023 when they froze its B USD Markets uh to be fair this was because Of the news that paxos had been ordered By Regulators to stop issuing the Binance Branded stablecoin the RV da Also temporarily froze usdc markets on Avalanche after the deeg in March 2023 Uh more about that in the description Moving on now in April and May of last Year the RV Dal voted to Deploy on Polygon's ZK evm and the protocol Deployed on mettis respectively uh for Those unfamiliar mettis is an ethereum Layer 2 that was effectively founded by Vitalic Ban's mom now we actually Reviewed it for our coin Bureau club Members remember the link is in the Description anyways in June 2023 lens Protocol a decentralized social media Protocol created by the team behind arv Raised $15 million from various crypto VCS and prominent crypto personalities Lens protocol is the backend for various Social media daps and one of the most Exciting of these is favor which you can Even download and use right now uh the Coin Bureau team invested in favor by The way a full disclosure and by the way If you enjoying this video so far smash That like button and subscribe to the Channel and ping the notification Bell
As well so you don't miss our next Altcoin update now over the summer of 2023 AR almost most experienced what Could have been its first shortfall now Some of you might recall that curve Finance founder Michael egov had used His CRV tokens as collateral to take out Enormous loans across various dii Protocols thankfully he topped up his Collateral and repaid some of his loans With the help of other crypto Wales had He not done that though then it's Possible that his CRV collateral would Have been liquidated now under normal Circumstances that wouldn't have been an Issue but in this case the liquidity of The collateral was low in plain English The value of Michael's CRV collateral Was say $100 million but if you tried to Sell $100 million worth of CRV you'd end Up with say 60 million because of price Loss from the actual selling itself and This would have meant that RV wouldn't Have been able to sell Michael's CRV Holdings to get enough to repay those Lenders the result could have been a Collapse in the RV token as its purpose Is partially to act as collateral for The entire protocol when there's a Shortfall to be clear the only r at risk Of being sold to cover a shortfall is Staked a the stake in yield is Compensation for the shortfall risk it's A pretty cool feature when you think
About it anyhow in November last year The UK company behind arv rebranded to Avara and acquired a Californian Software company called Los phiz Engineering which had been building a Phantomesque ethereum wallet called Family FYI Phantom is the top wallet on Salana and it's known for its really Slick ux in theory the announcement was Supposed to be bullish in practice However it didn't happen at the best Time since alve had just discovered an Unspecified vulnerability affecting its Protocol on multiple chains and the Simultaneous rebranding gave the Impression that avara had been Neglecting its Flagship protocol case in Point Gauntlet a crypto riskmanagement Firm ended its four-year relationship With arv this February and many have Argued that this termination was part of Gauntlets pivot to focus in on a Competitor to arve but the gauntlet team Explained this was due to dysfunction in The arve Dal specifically Gauntlet quote Found it difficult to navigate the Inconsistent guidelines and Unwritten Objectives of RV's largest stakeholders Now many have assumed that this is a Reference to certain RV Wales consider For example that chysis found that 90% Of voting power in Dows comes from just 1% of token holders the tensions between Ave and its def5 Partners continued in
April when the RV da considered removing Dy as collateral from the protocol to Bring you up to speed Dy is a Decentralized stable coin issued by Another defi protocol called maker da Which had added Athena's e USD as Reserves for D now eusd is not a stable Coin per se but a quote synthetic dollar And collateral alized Cash and Carry Trade now if that sounds complicated That's because it is and it led to Concerns in the RV community that D Could lose its Peg if there was ever an Issue with e USD and this is Particularly because large amounts of Dye were being minted using eusd as Collateral and obviously Dy could be Used within the RV protocol in the end It looks like the RVE D voted to make Some adjustments to D's risk parameters Ave and maker subsequently partnered to Help bring trafi to defi seemingly Mark In the end of the feud do note though That maker recently rebranded to Sky Hence the title you see in the image in The video now where were we ah yes may In May the arv da tabled a proposal for The fourth version of its protocol which Will come back to a bit later Aptos also Tabled a proposal to launch a version of Arve on its move based blockchain chain Something significant given that RV is Only available on evm chains uh more About Aptos in the description now
Incredibly RV actually benefited from The crypto market crash at the beginning Of August you see the protocol Reportedly raked in over $6 million in Collateral liquidation fees uh then just A couple of weeks later RV reportedly Hit a record high in weekly borrowers Over 40,000 of them aside from the fact That more users mean more fees for for Are more borrowers also suggest that Lots of crypto whales are feeling Bullish after all the main reason why People borrow use in their crypto as Collateral is to speculate on more Crypto and more borrowers therefore Means more speculation which is of Course a bullish indicator speaking of Bullish the RV token has been on a tear Over the last month it's up almost 50% Even though there's evidence that Institutions have been buying AA due to Its fundamentals it's possible that the Bigger demand driver has been those Aforementioned yields for staking go Remember that the interest rate for Borrowing go is less than 4% for Ave Stakers while the Stak in rewards for go Are around 15% buying and staking Ave Not only allows defi Wales to earn a Bigger yield but also get some gains in The form of RV's price appreciation Which is driven partially by speculation If this is the case then RV could start To lose steam once the supplyer of go
Hits 140 million and this is because the RV Dow appears to have put a minting cap Of 140 million go as you can see 12 120 Million go has been minted already Suggesting there's only around 20 Million more that can be minted once the Max supply has been minted there won't Be any incentive for people to buy and Stake a to take advantage of the lower Interest rate but this is just the Demand side of the equation in the short Term in the longer term it's likely to Be supercharged by RV's own own Stak in Rewards and this is where things get a Little complicated so bear with me to Refresh your memory the primary reason Why people lend their crypto on RVE is To earn yield on that crypto RV's Lending yield is in a sense competing With the yield on other products inside And outside of crypto like regular Staking and bonds to put things into Perspective yields on liquid state eth Are currently around 3% and the yield on The 2-year treasury is around 3.5% Meanwhile the yield for stake in arv is Around 4.7% and this means it's higher than its Competition and it's going to be even Higher very soon and this is due to a Combination of the fact that more and More eth is being staked which of course Leads to lowering the stake in yields at The same time the FED is expected to
Begin cutting interest rates in due Course which will lower the yields on us Bonds and if the crypto Market keeps Rallying there will be more borrowing And if there's more borrowing that means That RV will generate more fees and in Case it wasn't clear enough RV staking Rewards are derived from RV's protocol Fees and this means that RV staking Rewards will rise while staking rewards For competing products will decline all While RVE rallies naturally this Positive feedback loop is fundamentally Caused by an easing in financial Conditions and the resulting rally in Risk assets like crypto as the de facto Liquidity protocol for all of crypto Arve and its token are perfectly Positioned to capture fees from the Speculation at least on the evm Ecosystem but what about the supply side Well historical data from coin market Cap suggests that 1 million RV have Entered circulation over the last 2 Years assuming an average price of Around $100 during that time period That's a maximum sell pressure of $100 Million which is spread out over 24 Months which is not much at all when you Notice that RVE has practically been Trading sideways for almost 3 years you Start to realize just how much potential This crypto project still has with a Market cap of around $2 billion RV is
Five times undervalued relative to its Total value locked of $1 billion though Some would debate the validity of this Valuation method in any case it's clear That Ave is wildly undervalued relative To its fundamentals and to be honest This could continue to be the case That's just because defi is a hard thing For retail investors to wrap their heads Around not only that but it seems that Retail investors are put off by RV's Price tag this is actually something we Noticed in our previous RV updates we Explained that RV was undervalued and The response in the comment section was That it wasn't because it already had a High price tag in the hundreds of Dollars and this is despite the fact That it's ultimately the market cap that Determines potential as all of you will Hopefully know the smaller the market Cap the more a crypto can pump or dump And that's because the smaller the Market cap the less money it takes to Push its price up or down in percentage Terms with a market cap of 2 billion RV Is a large cap but it still has Potential if defi becomes a big Narrative during this bull market RV Could pull a 6X and this is very likely If regulations are passed that make it Possible for institutional investors to Get more involved in altcoins some of You will know that RV has actually been
Trying to onboard institutional Investors and if you want to turn that Potential 6X into a potential 60x and Check out the coin Bureau deals page you See it's got trading fee discounts of up To 70% and sign up bonuses up to $100,000 on the best crypto exchanges You see these deals they won't be around For long and are only available for coin Bureau viewers so take advantage of them While you still can using the link in The description now whether RV can pull A 6X ultimately depends on its upcoming Milestones now as a dow RV technically Doesn't have a road map but its upcoming V4 upgrade is for all intents and Purposes a road map per the proposal RV V4 will begin testing later this year And won't be released until mid next Year as you can imagine RV V4 consists Of a long list of technical upgrades but Here are some of the highlights the First is a unified liquidity layer which To our understanding will make it Possible to just deposit crypto into the Protocol without having to find the Actual pool and this will of course Streamline user experience the second Highlight of V4 is making it possible For interest rates to change more Aggressively in response to changes in Supply and demand of crypto in a pool This is presumably to protect the Protocol from shortfall events by
Discouraging borrowing and encouraging Lending more intensely the third Highlight is the introduction of a Liquidity premium now as you might have Guessed this pertains to large loans Made against illiquid cryptos liquidity Premiums will make it easier to borrow Against more liquid cryptos and more Difficult to borrow against less liquid Crypto so it's more protection for the Protocol other highlights include the Automatic offboarding of certain cryptos And automated treasury management this Is significant as stany mentioned in an Interview that v4s purpose is partially To bring AR to a state where minimal Governance is required and this is why Some have speculated that V4 will be AR's final version and that reminds me Stany also seemed to imply that arve or Rather avara is planning to introduce The go stable coin to the lens protocol And its front ends logically this would Create an organic source of demand for Go that's hopefully not reliant on Crypto market conditions which would Ensure its Pig stays put and in case Anyone is wondering Stanny neither Confirmed nor denied whether a token is Coming for lens protocol but he seemed To suggest that this will be up to the DA which launched its governance last Year it's safe to assume that a token Will be launched only once regulations
Become clearer in the US and elsewhere RV's biggest upcoming Milestone however Relates to its expansion to non- evm Chains in a fireside chat with Aptos Co-founder Muhammad shik Stanny revealed That avara is extremely bullish on the Move program in language and that he Believes move will be the future of Crypto development this is a bigger Bombshell than you think you see the Whole reason why RV launched on ethereum And why it's been focused on the evm is Because that's where all its users and Capital were from Stan's perspective This is starting to change and he seems To believe that all the capital and Users will move to move based Blockchains like eptos and sui there's Just one problem though and that's that Stanny admitted this means that a Developers will have to code every From scratch which won't be easy it Doesn't help that avara continues to be Focused on ethereum's ecosystem and that Many of these move-based blockchains Already have decentralized lending and Borrowing protocols that are likely to Maintain their dominance even if arve Comes over and this of course brings me To the challenges that we foresee for Arve and the first is that Aforementioned competition from other D5 Protocols to be clear Ave has been on The Cutting Edge of defi since its
Inception and continues to raise the bar For every D protocol in crypto period The problem though is that this has been The case when it comes to ethereum's Infrastructure the fact of the matter is That the user experience on ethereum Pales in comparison to what can be found On Next Generation cryptos like salana And Nia and as we predicted ethereum has Become A's Achilles heel the good news Is that avara isn't giving up on Ethereum on the contrary it's looking to Help build out the userfriendly Infrastructure required for ethereum and Its protocols to compete the bad news is That Stanny can see that move-based Blockchains are probably the future and The more it spends time trying to Improve the past the further it will Fall behind this ties into RV's Second Challenge and that's development you see Unlike most defi protocols arve is truly Decentralized I mean even its front end Is hosted on a decentralized protocol The problem is that decentralization Makes it very hard to adapt as Everything needs to pass through a dial Vote first If we're honest with Ourselves the main reason why crypto Projects try to be decentralized is so That they can evade regulatory scrutiny So what happens when regulations are no Longer a threat in that environment the Most centralized cryptos can get ahead
Because they can evolve faster and this Is exactly what we've seen over the last Few years everyone knows Next Generation Smart contract cryptos are more Centralized than ethereum and its peers But again this gives them the ability to Implement upgrades in a faster and more Coordinated fashion than decentralized Cryptos and this is why it's going to be Very interesting to see how avara Handles expanding arv to different Blockchains depending on the Circumstances they could decide to Launch a brand new lending and borrowing Protocol that isn't dependent on the RV So they can stay ahead of the Competition and this relates to ave's Third Challenge and that's regulation Now we couldn't help but notice but some Of the information we used in our Previous RV research had been scrubbed Such as the conversion of its previous Lend token into Ave that happened in 2020 now this could be coincidence uh But we don't think it is and that's Because in May 2023 a crypto exchange Called B delisted over a dozen crypto Tokens including Ara at the time there Was widespread regulatory scrutiny from The SEC and the scrutiny only seems to Be increasing with defi you if you need Evidence of this look no further than The recent Wells notice that went to Unis swap to be blunt defi seems to be
The target for Regulators around the World defi lending and borrowing Protocols seem to be the biggest targets As they allow the one thing that central Banks and governments cannot afford a Free market around interest rates the Ability to borrow and lend without Restrictions and oversight it's possible That the limitations on RV's governance In V4 are partially motivated by an Attempt to evade whatever moves at Regulatory capture could come with a bit Of luck positive defi regulations will Be passed in major jurisdictions but That will probably supercharge the Centralization competition I just talked About regardless there's a reason why a Is the second largest def5 Pro iCal it Is the Undisputed Blue Chip of the niche And its dominance is unlikely to be Challenged for the foreseeable future And this is mainly because of ethereum Which will likewise continue to be the Dominant ecosystem for the time being It's easy to forget that every crypto Project and protocol faces challenges of Its own even the biggest ones and the Fact that almost none of them held up as Well as a due in the bare Market is Proof of the fact that it's one of the Best designed crypto projects ever made And it continues to hold this title but Let's be real if you're looking for a 10x or a 100x you're probably going to
Find it somewhere else and everything We've discussed today suggests looking At RV's competitors on move based Blockchains and if you don't know which Ones these are or how to research them Then you already know where to Go that's all for today's video if you Learn something new then smash that like Button to let us know and if you want to Keep learning about promising altcoins Uh then be sure to subscribe to the Channel and ping that notification Bell As well and if you want to help others Learn about arv well then share this Video with them as always thank you very Much for watching and I'll see you in The next one this is Nick signing off
