Curve (CRV) - a decentralized stablecoin exchange that uses an automated market maker (AMM) to manage liquidity.
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Cryptocurrency project Curve (CRV)
Curve — one of the new decentralized financial service (DeFi) protocols, built on top of Ethereum. It allows you to trade, not using a central order book, but using pools of cryptocurrencies. Pools are provided to users so that they can receive a commission from their deposits.
Launched in January 2020, Curve is synonymous with the decentralized finance (DeFi) phenomenon and experienced significant growth in the second half of 2020. In August, the platform launched a decentralized autonomous organization (DAO) with CRV as its native token. The DAO uses the Ethereum-based creation tool Aragon to connect multiple smart contracts, used for users' escrowed liquidity. However, issues such as governance differ from Aragon in their weight and other aspects.
Platform uniqueness
Like Uniswap or Balancer, Curve allows users to earn commissions for providing liquidity to pools. Traders with CRV on their balance sheet can buy and sell assets at potentially better prices. Curve has garnered significant attention, following its remit as an AMM specifically for stablecoin trading. The launch of DAO and CRV tokens has brought additional profitability, given the use of CRV for governance, as it is awarded to users, based on liquidity commitments and tenure.
The high annual return of Curve is achieved due to the following factors:
| Increase | As long as someone is trading on Curve, the liquidity provider will receive a transaction fee. As the volume of Curve transactions increases, the annual revenue of the provider will also increase. |
| Income | Lending tokens, such as Compound. This can generate even more revenue than just Curve's transaction fees - loans provide additional interest. |
The CRV cryptocurrency is used as a governance token to reward liquidity providers. This allows holders to have additional income.
Buying and selling coins
The total supply of CRV - 3.03 billion tokens, the majority of which (62%) go to the liquidity providers. The rest distribution is as follows: 30% for shareholders, 3% for employees and 5% for the public reserve. Distribution of shareholders and employees is carried out with a two-year vesting schedule. CRV is a freely traded token and is available against cryptocurrencies, stablecoins and fiat currency pairs on major exchanges. These include:
- Binance;
- OKEx;
- Huobi Global.
Curve Finance is integrated with 1inch, Paraswap, Totle Swap Dex.ag, Debank, InstaDapp DSA, CoinGecko, Zapper.fi, Zerion, Pools.fyi, Spells.fyi and many more.