What is the Curve Finance (CRV) token and what kind of financial service does it offer?
What is CRV? What does Curve Finance really do?
Questions such as these will be answered in this article by us, Bitkub Academy.
What is CRV?
Curve Finance (CRV) is a decentralized exchange platform (DEX) with a Decentralized Autonomous Organization : DAO) or CurveDAO aiding and controlling the platform’s various functions much like a real organization in the traditional financial world.
CRV was initially created with an infrastructure to facilitate usage of stablecoins, such as DAI, USDT, or USDC. Curve Finance is situated on the Ethereum blockchain network, making CRV an ERC-20 standard token, with its platform much like Uniswap or Balancer.
Curve currently accomodates the trading pairs of BTC and Stabelcoins, including DAI, USDC, USDT, and more.
Curve (CRV) is a project founded by Michael Egorov in January, 2020, a period of DeFi flourishment. Michael is an experienced Russian scientist in the field of blockchain technology development and cryptocurrency.
In 2015, Michael had also co-founded and serves as NuCypher’s CTO, while maintaining the position of founder at LoanCoin, a decentralized bank, offering interest rates for users.
As mentioned beforehand, Curve Finance operates with a DAO developed on Aragon with CRV being a governance token, much like many other Decentralized Finance tokens (DeFi), which provides the ability for users to propose systematic changes and for other holders to vote for or against them. The CurveDAO is adept in enabling votes’ weight, which are indicated through CRV holders’ amount of locked tokens and duration.
An additionally helpful bit of technology is the integration of an Automated Market Maker (AMM) that controls the network and provides convenience in token exchanges, which can include both dollar pegged cryptocurrencies and stablecoin pegged ones, namely, DAI, USDT, USDC. Stablecoins pegged to Bitcoin are also exclusively accepted, for instance, sBTC, RenBTC, and WBTC.
CRV is utilized as a governance token, while also yielding its holders’ revenue through liquidity provision and staking. Staking on Curve Finance can be as long as 4 years to maintain and enhance liquidity, as well as create profit from transaction fees.
A noteworthy area is that CRV has become an increasingly popular platform amongst certain groups of DeFi investors, with the token being released in August, 2020, Curve Finance, which initially only situated exchanges and financial transactions with stablecoins, became one of the fastest growing platforms, reach 1 billion USD in Total-Value Locked (TVL).
In reference to statistics from Coinmarketcap on October 13, 2021, CRV is ranked as the 86th highest in terms of market capitalization, with around 1.1 billion U.S. dollars or around 37 billion Thai baht. CRV’s maximum supply is fixed at 3,303,030,299 CRV with a current 426,748,438 CRV in circulation.
Additionally, UCRVNI once made an all-time high at 2,016 baht and is hovering around the price of 87 baht at the time of writing.
It is safe to say that CRV is a unique token in the crypto world, with Curve Finance initially being a platform only facilitating transactions regarding stablecoins, up until its popularity increase after the release of CRV, a governance token providing its holders the ability to propose policy changes, as well as vote for or against others’ proposals, further prolonging the platform’s decentralized state and sustainable growth. Nowadays, Curve Finance functions with the CurveDAO, a Decentralized Autonomous Organization fully maintaining the platform with an Automated Market Maker replacing what would usually be order books on other platforms, hence enhancing the network’s liquidity.