Curve is a decentralized exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity.
This DeFi’s leading AMM (Automated Market Maker) has hundreds of liquidity pools that have been launched through Curve’s factory and incentivized by Curve’s DAO, allowing participants to rely on Curve’s proprietary formulas to provide high liquidity, low slippage, low fee transactions among ERC-20 tokens.
The main use of Curve has often sparked alternative views; however, the easiest way to understand Curve is to see it as an exchange. Curve’s main goal is to let users and other decentralized protocols exchange ERC-20 tokens (DAI to USDC for example) through it with low fees and low slippage. Unlike most exchanges that match a buyer and a seller, Curve uses liquidity pools. To achieve successful exchange volume, Curve needs a high volume of liquidity (tokens) and therefore offers rewards to liquidity providers.
Curve pools use liquidity more effectively by concentrating it at current prices. As trades happen, the pool readjusts its internal price to the highest liquidity region without creating losses for the pool. Curve pools also have variable fees which can range between 0.04% and 0.40%
Launched on 13th August 2020, the CRV token is a governance token with time-weighted voting and value accrual mechanisms. The main purposes of the Curve DAO token are to incentivize liquidity providers on the Curve Finance platform as well as to get as many users involved as possible in the governance of the protocol.
The token also has other purposes like to function as a governance medium, incentive structure, and fee payment method, along with a long-term earnings method for liquidity providers.
Who are the Founders of Curve DAO Token (CRV)?
The founder and CEO of Curve are Michael Egorova.
Mr. Micheal is a Russian scientist with various experiences with cryptocurrency-related enterprises. In his earlier years, he co-founded NuCypher, a cryptocurrency business building privacy-preserving infrastructure and protocols, and was also the founder of LoanCoin, a decentralized bank, and loans network.
What is Curve DAO Token (CRV) Used For?
Staking
CRV can now be staked (locked) to receive trading fees from the Curve protocol. A community-led proposal introduced a 50% admin fee on all trading fees. Those fees are collected and used to buy 3CRV, the LP token for the TriPool, which are then distributed to veCRV holders.
Boosting
One of the main incentives for CRV is the ability to boost your rewards on provided liquidity. Vote locking CRV allows you to acquire voting power to participate in the DAO and earn a boost of up to 2.5x on the liquidity you are providing on Curve.
Voting
Once CRV holders vote-lock their veCRV, they can start voting on various DAO proposals and pool parameters.
Provide liquidity
The main purposes of the Curve DAO token are to incentivize liquidity providers on the Curve Finance platform as well as to get as many users involved as possible in the governance of the protocol. Liquidity providers on the Curve platform receive $CRV for providing liquidity. This ensures the protocol continues offering low fees and extremely low slippage.
Vote locking
One of the most important incentives to holding CRV is the vote locking boost. Each liquidity provider can increase their daily CRV rewards by vote locking CRV.
What is the Unique Point of Curve DAO (CRV)?
Curve’s unique feature is its voting process.
To vote on the Curve DAO, users need to lock vote lock their CRV. By doing so, participants can earn a boost on their provided liquidity and vote on all DAO proposals. Users who reach a voting power of 2500 verCRV can also create new proposals.
verCRV stands for vote escrowed CRV, it’s a locker where users can lock their CRV for different lengths of time to gain voting power. Users can lock their CRV for a minimum of a week and a maximum of four years. As users with long voting escrow have more stake, they receive more voting power.
Also, Curve caters to anyone involved in DeFi activities such as yield farming and liquidity mining, as well as those looking to maximize returns without risk by holding notionally non-volatile stablecoins, allowing participants returns.
How Many Curve DAO (CRV) Coins Are There in Circulation?
The total CRV supply is 3.03 billion tokens and will be distributed as follows:
- 62% to community liquidity providers
- 30% to shareholders (team and investors) with 2-4 years vesting
- 3% to employees with 2 years vesting
- 5% to the community reserve
The initial supply of around 1.3b (~43%) is distributed as such:
- 5% to pre-CRV liquidity providers with a 1-year vesting
- 30% to shareholders (team and investors) with 2-4 years vesting
- 3% to employees with 2 years vesting
- 5% to the community reserve
The circulating supply will be 0 at launch and the initial release rate will be around 2m CRV per day.
How Is the Curve DAO Network Secured?
Curve is non-custodial, meaning the Curve developers do not have access to your tokens, and curve pools are also non-upgradable, so you can have confidence that the logic protecting your funds can never change.
Currently, Curve only supports stablecoins, reducing the risk of loss in markets. This does not guarantee constant profits as users can still lose money once markets are rebalanced to reflect cross-market prices.
To confirm they are a Curve has employed third-party auditing companies.
How do I Buy Curve DAO Token (CRV)?
Curve is an exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading and low risk, supplemental fee income for liquidity providers, without an opportunity cost. The CRV token can be used for a wide range of uses like staking and boosting.
CRV tokens can be easily purchased by the following steps.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy CRV through your trading account.
Which Cryptocurrency Wallet Supports Curve DAO Token (CRV)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as Curve DAO Token (CRV). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their CRV wallet because it offers a simple and interactive interface, making it easy for people to navigate its system.
