Recently, many DeFi projects have started trading stablecoins via the AMM model. One such project is ‘Curve.’ After its launch, the total locked value increased by 4x within some days.
Let’s learn more about Curve, its features, and CRV tokens.
What Is the Curve Platform?
The trading of stablecoins is the primary focus of Curve Finance. Since its start, Curve has consistently been among the highest-performing projects in the decentralized finance (DeFi) industry. Curve has emerged as a vital component of the DeFi infrastructure because it facilitates the smooth trading of stablecoins through its specialized automated market maker (AMM).
Uniswap is credited with developing and popularizing the AMM paradigm for decentralized exchanges; however, many other DeFi protocols, including Curve, have adopted the model. Most AMM-based platforms permit the trading of more volatile assets, necessitating using a mathematical model known as a bonding curve considering a broad range of price points.
Since it was first released, Curve has also offered to trade non-stable cryptocurrencies, expanding on its basic asset management module (AMM). In addition, it has spread from its initial home on Ethereum to a multitude of additional layer 1 blockchains and layer 2 solutions.
The holder of CRV can have voting rights granted to them via a smart contract, allowing them to change the platform and dictate how it distributes its financial incentives.
What Is the CRV Token?
Curve DAO, or CRV, is the utility token the Curve uses.fi DeFi protocol allows users to trade stablecoins and other ERC-20 tokens. The primary objective of Curve is to facilitate connections between users and exchange protocols to trade ERC-20 tokens and stablecoins. Because Curve's financial platform does not perform custodial functions, users always retain control of their tokens.
Current trading price: $0.8489
Market cap: $2.80 billion
Total supply: 3.30 billion
History of Curve
On its website, the Curve project does not provide any information regarding its team members or creators nor give a date for when the project was officially conceived or launched.
Instead, the white paper for Curve was released in November 2019 and identified a sole author named Michael Egorov. In addition, Egorov co-founded the company that would later be known as NuCypher. The business has created a network built on Ethereum that will enable applications to encrypt their data and preserve the users' privacy.
Features of Curve
Liquidity Rewards
The fees paid by traders who utilize Curve to swap assets are given to the liquidity providers, often known as LPs. The quantity of liquidity offered determines how the swapping fees are distributed among all the LPs. The volume of trades within that pool determines the rewards, or variable annual percentage yields or vAPY.
In addition to being utilized as payment for switching fees, CRV tokens are rewarded to limited partners (LPs) who contribute liquidity to specific pools. The votes cast by community members will determine how the token APR (tAPR) prizes are doled out. Farmers that focus on yield look for possibilities like these all the time.
In addition, the incentives can be "boosted" by "locking in" CRV to the protocol for a predetermined amount of time. For instance, a user may increase their benefits by a factor of 2.5 by locking a CRV into one of Curve's smart contracts and obtaining veCRV in return for the CRV they locked in.
Staking
By staking their CRV, holders of veCRV gain the opportunity to receive platform trading fees in the same manner as liquidity providers. This aims to bring LPs and people who participate in community governance closer together in terms of their motivations.
Boosting
Curve users can "boost" the CRV incentive they earn via participation in liquidity pools once they have received veCRV. This contributes to the system, making it more capable of supporting additional staking, boosting, and governance engagement.
Voting
Voting veCRV token holders can vote on governance proposals made within the DAO using their tokens. Voting is also how newly generated CRV is applied to different pools, which is an essential part of the process because it directs token rewards and decides which pools are the most lucrative.
What Makes Curve Unique?
Curve DAO is exceptional because of its technology and technical capabilities; this is one of the reasons why Curve.fi is such an appealing exchange in the DeFi industry. The curve can function as an automated market maker because it does not rely on order books but instead builds liquidity pools based on smart contracts.
Users are linked to the most efficient pathways for their exchanges while trading stablecoins and tokens occurs between traders and exchange protocols. The curve has become a household name when discussing decentralized finance thanks to the technology it employs and its ability to affect the most advantageous token and stablecoin trades.
How to Buy CRV Tokens?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including CRV, users can now trade easily and seamlessly.
To buy CRV tokens, first, you must create an account on CoinEx and proceed as follows.
If you already have a CoinEx account, this is how to purchase and sell CRV on CoinEx:
- To access your CoinEx account, visit the website or launch the app and enter your email and password.
- Put funds in your account to make CRV token purchases. You can deposit the funds via bank transfer, credit card, etc.
- Once you have funds in your account, you may buy CRV tokens by going to the CRV trading page and choosing the trading pair you wish to use.
- Tokens (USDT, BTC, ETH, and CET, etc.) can be exchanged for CRV. Put in your order and the quantity you want to buy.
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