Curve DAO Token is a cryptocurrency token, issued on the Ethereum platform, with a market cap ranking 955 in the cryptocurrency market. Curve DAO Token is symbolized as CRV, symbolized as Curve DAO Token. In this article, VakaFx will share to everyone all information about Crv token Price, Chart and Marketcap.
What is the Curve?
The curve is a decentralized exchange (DEX), which is designed to be Defi's flagship stablecoin swap platform. By focusing solely on stablecoins, the exchange can provide traders with extremely low slippage.
The exchange resembles Uniswap in that it uses liquid, non-custodial pools and rewards the liquidity providers.
Curve currently supports DAI, USDC, USDT, TUSD, BUSD, and sUSD, as well as BTC pairs. Users can trade between these pairs extremely quickly and efficiently.
Uniswap is available, is Curve necessary?
The Curve's features are almost identical to Uniswap. So do we really need another swap token exchange?
The answer is "absolutely necessary", for the following reasons:
- Expensive Fees
On Uniswap, token-to-token transactions are expensive. The tokens only trade directly with ETH. So, if you want to trade token A for token B, Uniswap will do two transactions; Token A for ETH and then ETH for Token B. This results in a doubling of the transaction fees.
- High Slippage
The algorithm Uniswap uses provides significant slippage on transactions of any size.
On the Curve it is the opposite. On the Curve, stablecoins trade directly with each other. Therefore, you only pay a one-time transaction fee of 0.04%. Curve's algorithm is also designed to minimize slippage.
How liquidity providers make money
A liquidity group is a group of tokens in smart contracts. They are created by the liquidity providers who provide the tokens. Curve encourages these providers by rewarding them in different ways:
Transaction fees: Liquidity providers earn a fee every time a user transacts stable coins on the platform.
- Interest Rate: Some groups provide interest rates on loans.
- Deals: Some pools also offer incentives.
- Reward: By offering a specific token to a low stakes liquidity pool, you can earn a reward.
Liquidity pools on Curve
Currently, the Curve has seven liquidity pools. The first four pools are loan protocols; includes Compound, PAX, Y, and BUSD. If you join these pools, you can earn money not only from transaction fees but also from lending. These four groups perform better when lending rates are high, but they come with more risks.
sUSD and sBTC are two pools that offer incentives (Synthetix and Ren). They are not in the loan group. The other two pools belong to the Bitcoin crypto group: ren and sBTC.
CRV tokens will be used to participate in CurveDAO, a time-based voting system that allows early participants to have higher voting rates as the project develops. All system fees will be accumulated into the DAO and used to burn the CRV afterward.
What is CRV Token?
CRV is a governance token, a cryptocurrency built on top of the Ethereum blockchain. There will not be any token offerings or ICOs. Instead, liquidity providers will be rewarded with CRVs based on how much money they give the protocol. Initially, about 2 million CRVs will be issued every day.
CRV Token distribution
In total, 151.5 million CRVs, or 5% of the total supply, will be required by LPs depending on the period in which benefits are earned in one year. Only 990 addresses earned more than 10,000 CRV with a whale representing 21% of CRV rewards.
The pre-launch phase is unlocked in real-time, meaning that after the first 24 hours, the first LPs will be able to receive 1/365 of their rewards. Here's how the initial 1.3 billion tokens (43% of total supply) were set up for distribution.
- 30% to shareholders for 2-4 years
- 5% for liquidity providers before CRV with a 1-year term
- 5% reserve for the CurveDAO community
- 3% for employees for 2 years
Curve's remaining 1.73 billion tokens are set to be distributed at a decreasing rate of 2¼ per year, meaning the entire supply will be fully redistributed over 300 years. At launch, 2 million CRV (or 0.067% of total supply) will be distributed per day, until 62% has been distributed through liquidity.
Cases of using CRV copper
CRV token holders are entitled to participate in protocol management such as voting and reward for long-term liquidity providers.
What exchange is CRV traded on?
There are currently four exchanges that have listed CRV, including Binance, Uniswap, BKEX, and CoinTiger. However, Blogtienao encourages you to use Binance exchange for trading because it is currently the largest exchange in the world and has high liquidity (this will be more beneficial than exchanges with low liquidity).
Is the Curve platform safe to use?
Currently, Curve's swap stablecoin mechanism and Curve's profit integration mechanism is audited by Trail of Bits.
When reading our audit report, we found that the code set has a pretty good code quality and test suite, and most of the concerns have been addressed. Besides, the Curve has also actively solved the vulnerabilities.
However, not so that the foundation is free of risks. Since the tokens of the Curve pools are pegged at the same price, there are certain risks to the protocol.
For example, if a token in pools loses the ability to peg a 1: 1 price and is permanently below $ 1, general liquidity providers will hold almost all of their liquidity in that currency.
But for a stablecoin to lose the ability to peg prices, a systematic error in its mechanism must occur first. And the "factor" that could make this happen is that the SEC imposes restrictions on USDC exchanges or a devastating attack on the Maker protocol that kills confidence in the DAI.
Both of these examples are highly unlikely, but not impossible.
Should you invest in CRV token?
According to the information provided by VakaFx, this is a potential project when possessing a lot of "special" things. However, the project is not without risks. So you need to thoroughly research and make your own decision whether to invest or not.
But one thing to keep in mind is that while CRV is tradable on platforms for traders who want to profit from the Defi fever, its main purpose is to be a governance token for CurveDAO.
Hopefully, through this article, you have a better understanding of the Curve project as well as the CRV co. If you have any questions or comments, please message VakaFx on Facebook or comment below, we will reply when we receive your question.
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