CRV, the native token of Curve DAO, is an Ethereum-based token. It is used in the Curve Finance ecosystem. Curve Finance is a decentralized exchange and automated market maker (AMM). In this article, we will go through CRV and Curve Finance, and answer all your questions about them. Stay with us.
What is Curve Finance and how does it work?
Curve Finance is a decentralized exchange or DEX that is used for exchanging ERC-20 tokens. It has similarities to other decentralized exchanges like Uniswap and Balancer, but with a big difference: Curve Finance is used for similarly behaving assets like stablecoins and wrapped tokens. Using Curve Finance, you can exchange different Ethereum-based stablecoins, or Ethereum-based wrapped tokens, with each other. For example, it is the most appropriate DEX for exchanging Tether (USDT) and USD Coin (USDC), or for exchanging wBTC and tBTC. The focus of Curve Finance is on stablecoins. It chooses the cheapest and safest way for exchanging tokens.
Like some other decentralized exchanges, Curve Finance makes use of liquidity pools. As you may know, decentralized exchanges are not governed by centralized entities. So, they rely on their users. Users of decentralized exchanges provide their liquidity. These users are called “liquidity providers”. In return for providing the liquidity, they receive the fees of the trades.
The biggest part of Curve Finance’s popularity is due to its unique algorithm for minimizing the impermanent loss. Curve Finance’s protocol connects users to different trading markets and finds the best fee rates. It offers the least amount of slippage and maximizes their return.
Who created Curve? The history of Curve Finance
The founder and CEO of Curve Finance is Michael Egorov. He has a lot of work experience in the field of cryptography and coding. Before Curve Finance, he worked as the founder and CTO of the encryption company called NuCypher. It’s interesting to know that he graduated from the Moscow Institute of Physics and Technology, and won a bronze medal in the 2003 International Physics Olympiad. He developed Curve Finance in 2020. Finally in August 2020, Michael launched the Curve DAO (Decentralized Autonomous Organization) and its native token called CRV.
The CRV token; price history and tokenomics
At the time of writing, each unit of CRV is being traded at $1.14. Its all-time high goes back to September 2020 when its price was nearly 7 dollars. CRV is the sixty-sixth-largest cryptocurrency by market cap. It has a max supply of 3,303,030,299 units. From this amount, more than 537,000,000 units are now in circulation. CRV’s market cap at the time of writing is more than 615 million dollars.
Since CRV is an ERC-20 token, you can use all Ethereum wallets for storing it. Some of the best Ethereum wallets include:
- Atomic Wallet
- Guarda Wallet
Curve is a well-known decentralized exchange and automated market maker. To differentiate itself from other rivals like Uniswap and Balancer, Curve has focused on a unique function, and that is exchanging similarly behaving tokens like stablecoins and wrapped tokens. Curve’s unique algorithm lets you trade these tokens with least slippage and fee. Do you think Curve will surpass its strong rivals in terms of popularity? Share your opinions with us.