Curve DAO Token
Curve is a decentralized exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity. On January 14th, 2021, Curve DAO Token price was $0.688297 USD with a 24-hour trading volume of $47,691,036 USD.
What Is Curve?
Curve, or CRV is a decentralized exchange for stablecoins. To manage liquidity, they use an automated market maker (AMM). Curve is now synonymous with the decentralized finance (DeFi) phenomenon, and has seen significant growth in the second half of 2020, in spite the fact they only launched in January 2020.
In August 2020, Curve launched a decentralized autonomous organization (DAO), that uses Ethereum-based creation tool Aragon to connect multiple smart contracts used for users’ deposited liquidity. The CRV serves as its in-house token.
How secure is the Curve Network?
Curve carries the standard risks associated with depositing funds in smart contracts and dealing with AMMs, i.e. impermanent loss. (Note: impermanent loss describes the temporary loss of funds occasionally experienced by liquidity providers because of volatility in a trading pair. This also illustrates how much more money someone would have had if they simply held onto their assets instead of providing liquidity.) Curve has been audited; however, this fact does not do anything to counter the risks involved in being exposed to a specific cryptocurrency. Additionally, although Curve only supports stablecoins so the risk of markets moving too quickly is reduced, users can still lose money once markets are rebalanced to reflect cross-market prices.
Where can you buy CRV and how many coins are in circulation?
CRV is a freely-tradable token and is available against cryptocurrency, stablecoin and fiat currency pairs on major exchanges. These include Binance, OKEx and Huobi Global, which held the lion’s share of trading volume as of September 2020. The total CRV supply is 3.03 billion tokens, the majority of which (62%) are distributed to liquidity providers. The remainder is divided as follows: 30% to shareholders, 3% to employees and 5% to a community reserve. The shareholder and employee allocations come with a two-year vesting schedule. Interestingly, CRV had no premine. The gradual unlocking of tokens means that around 750 million should be in circulation one year after its August 2020 launch.
Why is Curve unique?
The launch of the DAO and CRV token brought in further profitability, given CRV’s use for governance, as it is awarded to users based on liquidity commitment and length of ownership. Curve has gained considerable attention by following its remit as an AMM specifically for stablecoin trading; furthermore, the explosion in DeFi trading has ensured Curve’s longevity, with AMMs turning over huge amounts of liquidity and associated user profits. The platform makes money by charging fee which is paid to liquidity providers.
Who are the people behind Curve?
The founder and CEO of Curve is Michael Egorov. He is a Russian scientist who has various experience with cryptocurrency-related enterprises, and, he is also the founder of decentralized bank and loans network LoanCoin. In 2015, he co-founded and became CTO of NuCypher, a cryptocurrency business building privacy-preserving infrastructure and protocols. Curve’s regular team is part of the CRV allocation structure, and will receive tokens according to a two-year vesting schedule as part of the initial launch plan.