Voting Rights veCRV holders can vote on how much CRV emissions | Blockchain Whispers

Voting Rights
veCRV holders can vote on how much CRV emissions (yield) every pool gets, this is called "Gauge Weight". The higher the Gauge the more CRV yield is going to LPs in that particular pool. You can see why this is important, as the higher the yield for LPs in a pool the more liquidity it attracts.

Reward Boosts
On top of that, holding veCRV gives Liquidity providers on Curve a boost (up to 2.5x) of their yield on their pool.
This creates a loop where LPs are incentivized to hold more veCRV to receive more CRV. And the lockups of CRV makes the token more illiquid and this creates a bullish alignment for all involved participants and keep the yield for aggregators and LPs high. These tokenomics are very sophisticated.

TLDR
Curve is the most important protocol for stablecoins as it has the deepest liquidity. This liquidity is ensured by the above outlined mechanisms. Now, why is liquidity so important, especially for stablecoins?

Because the deeper the liquidity, the more secure is the peg of the stablecoin (!!!). This is the most important point here, the reason for the so-called Curve Wars and the key-takeaway here. This is the reason why stablecoin protocols compete against each other over influence on Gauge Weights, because the higher the Gauge the more liquidity is in their pools, and the more liquidity is in there pools the more stable is their peg.
this is what its all about.

In Vol. 2 we will take a closer look at the participants of this fight, there methods and why and how the voting power on Curve can be monetized.

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Mr. Y - lead fundamental analyst