We study the chiral homology of elliptic curves with coefficients in a quasiconformal vertex algebra V. Our main result expresses the nodal curve limit of the first chiral homology group in terms of the Hochschild homology of the Zhu algebra of V. A technical result of independent interest regarding the relationship between the associated graded of V with respect to Li's filtration and the arc space of the C-2-algebra is proved.
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