### Proxy

###### Well, as the price of $CRV increases, this is reflected in the APY of a Curve pool. For example, if the price of$CRV increases by 50c, this might result in an increase to the pool’s APY by 2%. This means the pool’s APY can be a proxy for the price of $CRV. ###### Buying an IRO allows you to earn the difference between a chosen strike price and a Curve pool’s APY. For a call, if the APY is greater than the strike price, you earn the difference between the two. This means that the Call IRO serves as a proxy for the difference between the APY and the strike price. ###### In a sense, our beloved intern’s strategy should really be called a proxy-proxy long/short on$CRV:
1. Buying a call is a proxy for the Curve pool’s APY

## 3. Buy Dopex Call IROs

### Logic

###### Rather than holding $CRV directly to benefit from a price increase, we will be buying a call option that you earn settlement revenue from if the floating rate exceeds your chosen strike rate. ###### Using an initial$CRV price of $2.30, the pool will receive an APY of 11.50%. ###### If the price of$CRV increases to $2.70 (i.e. by 17.39%), we receive an APY of 13.50% which constitutes a 2% increase to the pool’s APY. ### Buy Call Option ###### Using a$2.70 price target in mind, let’s move on to buying some ATM Call Options as a proxy long of $CRV price. ###### The Call Option will have the following factors: • Notional value of$100m
• Strike Rate = Forward Rate = 11.50% (i.e. an ATM option)
• Time to expiration of 7 days
• Volatility of 120%
• Discount factor of 1 (i.e. risk free rate is 0%)

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