Curve DAO Token (CRV): an overview of a cryptocurrency token and a DeFi project, course, operating principle, prospects

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Curve DAO Token (CRV) is a token launched in August 2020 by the DeFi project Curve. It was launched unplanned on August 14 and was soon added to a number of crypto exchanges, including Binance and Poloniex. In just a few minutes, the rate soared by thousands of percent and exceeded $ 50. True, almost immediately it began to fall and now the token is traded at a price of $ 4.2.

CRV is a control token with the following features:

✅  Time-weighted voting.

✅   Capturing value for promoting certain pools.

✅   Blocking mechanism for calculating remuneration for long-term liquidity providers

✅   Burning commissions.

Since August 14, the Curve DAO Token (CRV) is available on the Binance exchange in CRV / BNB, CRV / BTC, CRV / BUSD, CRV / USDT pairs.

The Btcnewsweb.com editorial team offers an overview of the Curve.fi platform and the prospects for its functional token.

Name Price Market Cap Supply Change % (7D) Performance
CRV
$2.24
$3,574,545,519.93 1597205326.1523 CRV
-7.29%

Curve DAO Token (CRV) chart and price

Binance CRV / USTD price chart:

General information

NameCurve DAO Token
TickerCRV
Token typeERC-20
BlockchainEthereum
Total emission1 312 282 106 CRV
Current issue (as of 27.08.2020)21 794 936 CRV
Course (as of 08/27/2020)4,2 $
Market Capitalization (as of 08/27/2020)91 150 906 $
Official sitehttps://www.curve.fi/
Twitterhttps://twitter.com/curvefinance
Sourcehttps://github.com/curvefi
Cryptocurrency exchangesBinance, BKEX, Gate.io, Bilaxy

What is Curve

Curve resembles a decentralized crypto exchange where users and protocols can exchange stablecoins with low fees and risks. Unlike conventional exchanges, which connect a specific buyer and seller, Curve uses pools of liquidity. Those who provide liquidity are rewarded. The platform is non-custodial, that is, developers do not have access to user assets, everything is stored on decentralized wallets.

Thus, Curve allows users and smart contracts (1inch, Totle, Paraswap, Dex.ag, etc.) to trade DAI, USDC and other stablecoins using a specially designed algorithm. Pools are based on external protocols – Compound, yearn.finance, etc., so that liquidity providers can choose among all the options the most profitable at the moment.

Stablecoins have long been an integral part of the cryptosphere, there are a lot of them (DAI, TUSD, sUSD, bUSD, USDC …), and this means that the possibility of exchange between them is relevant for users. Centralized exchanges charge much higher fees than Curve.fi.

Rationale for interest rates

Whenever someone makes a trade on Curve.fi, the liquidity providers (the people who made their deposits) receive a certain commission evenly distributed among all the providers. Therefore, the higher the volumes and volatility in the system, the higher the APR is obtained.

In addition, liquidity pools are linked in the background with credit protocols like Compound, iEarn, and this gives additional interest on top of trading fees. Although some pools don’t use any lending protocols (sUSD, ren, sbtc). If the credit protocol is not used, then the income comes from commissions only.

Since the volume of trading fees directly depends on the volume of transactions, even within one day, APR can be both very high and very low.

How to choose a pool in Curve.fi

There are currently seven pools operating on Curve. Five of them are regular stablecoin pools, and the last two are Bitcoin tokenized pools (BTC on the Ethereum blockchain). By supplying liquidity to the pool (making a deposit), no matter what coin you deposit, you gain access to all the coins available in the pool. In addition, all liquidity providers are rewarded with CRV tokens regardless of which pool they contribute to.

Credit pools

These four pools are credit, income in them consists of interest on loans and trade fees:

  • Compound
  • PAX
  • Y
  • BUSD

Compound is the first and oldest pool. The funds invested in it are converted into an equal amount of cTokens. The other three are yPools, which work with the iEarn yield aggregator tokens. Compound does not always offer the best lending rates, and then yTokens will automatically rebalance the stablecoins to the protocol (s) with better rates (from Compound, Aave and dYdX). yPools are more risky precisely because of the use of several protocols at once – any of them can have critical vulnerabilities.

sUSD

This pool offers the best yield in stablecoin pools provided by the collaboration between Curve and Synthetix. sUSD is the Synthetix stablecoin. Using this pool, the participant can stake their tokens and earn SNX.

Bitcoin pools

The Ren pool allows the use of renBTC and wBTC coins, fully supported BTC versions on the Ethereum blockchain. renBTC is new and completely decentralized, while wBTC is more proven, but less decentralized. Ren only allows you to receive trading fees and has a small APY for now.

The sBTC pool is stimulated by REN, SNX and BAL tokens, except for CRV. The sBTC token is a synthetic version of Bitcoin on the Ethereum chain. Offers good profitability, but also has a number of risks.

CRV token and its issue

On August 14, an anonymous developer @ 0xc4ad Curve, without the knowledge of the project team, released native Curve tokens and distributed them. To do this, he used the open source code available on GitHub.

The protocol team initially stated it was a scam. However, after checking, she admitted that all the deployment parameters are real – the code, administrator keys, other data. The team had to recognize the release as valid, since the token immediately began to gain momentum. Following this announcement, Poloniex and a number of other major crypto exchanges listed the token.

A few hours later, all community members were able to stake, which was deployed on top of a smart contract launched by user @ 0xc4ad.

Some experts reacted negatively to the situation and considered the behavior of the Curve team to be wrong. They believe it is necessary to redeploy the contract to avoid harm to the project.

Where to store CRV

It is convenient to store CRV in a wallet that supports work with the ERC-20 standard. The best option in terms of convenience is decentralized wallets that allow you to connect to credit pools, for example, Metamask.

When it comes to storage for a long time, then it is optimal to choose a hardware wallet – however, the token has not yet been added by Trezor and Ledger. Presumably, this will happen in the near future. Track information on official websites.

Where to buy / sell CRV token

The token is supported on the exchange https://www.binance.com/ru. To purchase it, you need to create an account on this site or log in. If you do not have cryptocurrency and are going to buy CRV for fiat, then you will also need to go through identity verification, which may take several days, taking into account the consideration of the application.

After replenishing your account with cryptocurrency or fiat funds, go to the “Spot Wallet” section and find the token of interest using the search. Click “Trade”.

CRV is traded against BNB, BTC, BUSD and USDT. Select the required currency pair and the system will take you to the trading page.

Here you need to create an order to buy a token by entering the required quantity and (in the case of a limit order) also the desired price. Click “Buy CRV”.

Advantages and disadvantages

Pros: ✅

✅  Choose from several pools and protocols to determine the most profitable at each moment in time.

✅  Higher APRs versus market.

✅  A promising area that is now actively developing.

Cons: ❌

❌  The interface is confusing at first glance, the complexity of mastering.

❌  Increased risks due to the use of several protocols at once.

Perspectives

Of course, copying the contract brought a lot of problems and condemnations to the project, showing in all its glory the cons of open source. Nevertheless, development is in full swing, the token has been added to the largest platforms and is of interest to users. So you don’t have to worry about Curve’s prospects for the near future.

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