Curve DAO Token (CRV) | Investing In The “Uniswap of Stablecoins” DEX And Liquidity Mining Protocol

4 min read

What is Curve Finance (CRV)?

Curve Finance (CRV) is a DEX (decentralized exchange) and DeFi protocol that caters specifically to stablecoins. Concepts similar to Uniswap, such as an AMM and liquidity pools, are incorporated into the network. This has led its developers to call it the “Uniswap of stablecoins”.

Curve has exploded in popularity since its launch in early 2020. In today’s stablecoin market, the project is favored by traders and liquidity providers in search of deep liquidity and low slippage rates. Curve is highly popular amongst traders as shown by its $19 billion TVL (total value locked). The average trading volume on any given day is upwards of $166 million

What Does Curve (CRV) Do Differently?

The Curve team has overcome a major problem faced by the stablecoin community, namely the lack of dedicated services. Curve has decided to largely focus on stablecoins pegged to national currencies rather than those pegged algorithmically. This in turn provides a stable and valuable structure that is able to leverage the unique applications and characteristics of these coins. Curve provides the link and easy flow of liquidity between centralized stablecoins like USDT and their decentralized counterparts, such as DAI.

Curve DAO (CRV) Benefits

With Curve, DeFi investors were able to overcome some of the problems of Uniswap V1. In order to keep stablecoin trading efficient, low-risk transactions, and passive rewards for liquidity providers, the developers implemented some proprietary systems that were lacking in other DEXs

Simple and Easy

What you’ll notice when you venture to Curve is that the protocol is very simple in both its retro design and technical structure. There is no doubt that the developers wanted their platform to work on any internet-connected device. Using the platform, you can navigate easily and find the vital information about pools you need to make investment decisions.

Reduced Slippage

Slippage represents the difference between your trade price and the price you actually pay for your assets. It’s the result of movement in price between the time your order enters the market and the execution of a trade. Slippage is a major problem for early DEXs. Curve alleviates these problems by focuses on assets pegged directly to national currencies.

Low Fees

The technology used by Curve enables the platform to provide unmatched exchange rates for stablecoins. The low fees are due to its simplistic smart contract design. The system completes the trade in one transaction which reduces Gas prices for traders. On average, traders pay 30% lower fees when they exchange their stablecoins on Curve versus Uniswap.

Multi-Currency Support

Curve is constantly expanding it’s network capabilities. The platform currently supports many of the top stablecoins available. Specifically, users can trade DAI, USDC, USDT, TUSD, BUSD, PAX and sUSD. The protocol also supports some BTC-pegged pools via RenBTC, WBTC, sBTC, and HBTC.

How Does Curve DAO (CRV) Work

Curve’s smart contract was programmed from the ground up to provide low slippage and low fee swaps between assets pegged to national currencies. The platform operates on the Ethereum blockchain. As such, it enjoys full interoperability within Ethereum’s vast ecosystem.

Users can make trades directly from an ERC-20 compatible wallet such as MetaMask. They can also trade CRV on other popular DEXs. Curve expanded its service to the Avalanche (AVAX) blockchain in 2021. This maneuver has already increased liquidity for traders.

Staking

Users can stake their stablecoins on Curve and earn passive rewards. Curve users locking their coins in liquidity contracts. You can add DAI or USDT to Curve Pool to accomplish this task. Notably, Curve offers multi-year staking contracts. The longer you stake, and the more coins you lock up, the higher your rewards.

Savings Account

Curve leverages a proprietary fiduciary savings account protocol to provide users with interest-bearing features. These accounts operate similar to your local bank account except you store your stablecoins instead of fiat. The payouts are much higher than your traditional savings account. Also, you get more transparency because you can monitor all transactions on the blockchain.

Support for the DeFi Sector

Curve has shown a pioneering spirit in the DeFi sector. The platform has even utilized its protocol to benefit others. The network provides a way to connect with other DeFi platforms using Curve pools. You can find pools with Yearn Finance, Uniswap, and Compound. This approach has helped drive more adoption in the DeFi market.

Curve (CRV) DAO Token

CRV is the ERC-20 governance token of the Curve ecosystem. Its primary purpose is to incentivize liquidity providers. The original supply of CRV was set at 1.3 billion. The system will issue a total of 3.03 billion after token distribution to liquidity providers.

Curve (CRV) Consensus

Curve shares in Ethereum’s technical characteristics. It relies on a Proof-of-Work (POW) consensus mechanism. Miners approve transactions on the Ethereum blockchain. The miner that adds the next block of transactions to the blockchain receives a reward for their efforts in the form of newly minted Ethereum.

Notably, Ethereum is in the middle of converting the network to a Proof-of-Stake (PoS) Network. The conversion would reduce Gas prices, provide staking capabilities, and improve scalability. These features would directly improve Curve’s responsiveness and capabilities.

Community Governance

You must hold CRV tokens to gain entry into the community governance mechanisms of the network. Curves system allows users to put forth proposals to a community vote. The more CRV you stake, the more weight the votes you cast hold. Community governance mechanisms are considered standard in DeFi because they are one of the only ways to provide decentralized governance to projects efficiently.

History of Curve (CRV)

Curve (CRV) is the brainchild of Dapp developer, Michael Egorov. He first introduced the concept via its whitepaper in November 2019. Interestingly, the original title for the project was StableSwap. The platform’s high yields and low slippage helped Curve to capture its niche market immediately.

How to Buy Curve DAO (CRV)

Curve DAO (CRV) is available on the following exchanges:

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

BinanceBest for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts USA residents (excluding New York & Washington State).

WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality.  It is the best exchange for residents of India.

Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.

How to Store Curve DAO (CRV)

We recommend using ZenGo, a multi-chain crypto wallet for everyone. Store 70+ digital assets including Curve (CRV) with unbelievable simplicity and bulletproof security. ZenGo is known for its legendary, 24/7 in-app customer support and its keyless MPC technology that gives you full control over your crypto, but is always recoverable.

ZenGo is available worldwide including Australia, Canada, Europe, UK, & USA (Purchases are restricted in Hawaii, New York, Rhode Island, US Virgin Islands).

Curve (CRV) – More Valuable than Ever

As the stablecoin market expands, so does Curve’s role in the market. The network is uniquely positioned to offer stablecoin users a variety of features that are hard to find anywhere else. For these reasons, you can expect Curve to continue to expand its operations moving forward.

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