Since its launch until now, Curve Finance has always been one of the leading projects in the Ethereum ecosystem through the fact that TVL is always in the top 5 and continuously cooperates with Fantom, Yearn to expand its products.
So why are Curve Finance and CRV tokens so potential and playing such an important role in the market? This article will give you all the details including:
- What is Curve Finance? Curve Finance highlights.
- Information about tokenomics and how to buy, sell, and store CRV Tokens.
- What is the potential of Curve? Should I invest in CRV Token?
Let’s find out together!
What is Curve Finance?
Curve Finance is an AMM decentralized exchange on the Ethereum ecosystem, dedicated to stablecoins (USDT, USDC, DAI, …) or similar assets but expressed in different forms. (renBTC, WBTC, pBTC,…).
Because of activity AMM . mechanism Therefore, assets on Curve will not be traded as an Orderbook (order book), but will be Swap in a Liquidity Pool (liquidity pool) according to the formula of Smart Contract.
Although it is a DEX, Curve Finance is not Permissionless (no permission required) like Uniswap. This means that users are not free to create liquidity pools like Uniswap, Curve liquidity pools are only created if the proposal on Governance receives everyone’s support.
Highlights of Curve Finance
Here are some highlights of Curve Finance:
Ability to minimize slippage
Inflation (slippage) here is the difference between the theoretical price you receive and the actual price you receive when making transactions on AMMs.
Eg, when you are going to trade 1000u to buy 5 BNB price ($200/BNB), after deducting the Protocol fee of 0.2%, you should get almost 5 BNB, but because of slippage, you will only get 4.7 BNB only.
Nearly 0.3 BNB that is Slippage.
Specific examples: The image below will clearly show you the application of Curve Finance compared to Uniswap. Trading at Uniswap will cause you to lose a lot due to price slippage.
The problem of slippage will be bigger when the transaction value is larger, therefore, Curve Finance is an indispensable bridge to help you minimize the level of slippage in the DeFi space.
- Uniswap: 10,000 USDT = 9,990 USDC.
- Curve Finance: 10,000 USDT = 9,997 USDC.
Automatic creation of liquidity pairs with 1 token
Instead of having to manually swap from 1 token to the necessary tokens to provide liquidity, Curve Finance will automatically swap for you.
Eg: Brothers have 1000 USDC and want to provide liquidity to Pool named “3Pool” with DAI/USDC/USDT assets at 20/40/40 ratio.
Curve Finance will automatically divide 1000 USDC into 200 DAI / 400 USDC / 400 USDT to add to 3Pool for you.
Lending Pool
The core of the project team Lending Pool are Liquidity Pool Assets (LPs). Lenders will transfer the backed crypto assets to the liquidity pool, in return, they will receive interest.
Borrowers will go to Deposit other crypto assets into the Liquidity Pool as collateral and borrow the Tokens they want from the Liquidity Pool and will pay interest. The interest rate will be calculated automatically according to the available formula and depends on the supply and demand of each asset class in the Pool.
Curve Finance has partnered with Compound creating a Lending Pool, allowing users to optimize profits from both Curve Finance’s transaction fees and Compound’s lending interest.
Base and Metapool Features
The feature allows to swap any 1 token into tokens in 1 LP token.
Eg: You have 1000 UST and want to swap to Pool tokens “3Pool”. The Base and Metapool feature will help you swap 1000 USDT to 200 DAI / 400 USDC / 400 USDT according to the value and rate of Pool “3Pool”.
This mechanism will help you reduce a lot of operations and processes but still optimize the output.
SynthSwap feature
This is a collaborative feature between Curve Finance and Synthetix, allowing you to focus on Synthetix Assets with low slippage. This is Curve Finance’s next niche expansion product to be released in Curve v3.
As such: Curve Finance is not just an AMM for Stablecoins (USDT, USDC, DAI,…), but also AMM for assets with similar characteristics (WBTC, renBTC,…) and Synthetix properties (sBTC, sETH,…).
Detailed information about CRV Token
CRV rate today
Currently, you can see the price of HARD tokens on Techtipsnreview Markets right at: https://markets.Techtipsnreview.com/currencies/curve-dao-token
Techtipsnreview Markets is a page where you can update real-time prices as well as view detailed information about Token Metric of projects. In more detail, you can visit the homepage and community page of the projects or filter the coins/tokens by Marketcap, Transaction volume,…
Key Metrics CRV
- Token Name: Curve Finance.
- Ticker: CRV.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0xD533a949740bb3306d119CC777fa900bA034cd52
- Token Type: Utility & Governance.
- Max Supply: 3,303,030.299 CRV.
- Total Supply: 1,521,949,991 CRV.
- Circulating Supply: 358,709,181 CRV.
CRV Token Allocation
The total supply of CRV tokens will be distributed as follows:
- Liquidity Provider: 62% – 2,047,878,785 CRV.
- Shareholders: 30% – 990,909,090 CRV.
- Employees: 5% – 165,151,515 CRV.
- Community Reserve: 3% – 99.090,909 CRV.
Initial Supply of CRV will be 1.3 billion CRV (~43%) and will be divided as follows:
- Team & Investor: 30% unlock gradually over 2-4 years.
- Liquidity Provider: 5% unlock gradually within 1 year.
- Community Reserve: 5% and no specific plan.
- Employee: 3% unlock gradually over 2 years.
CRV Token Sale
Curve Finance does not open to sell CRV tokens in any form, all will be distributed according to the mechanism Farming.
CRV Token Release Schedule
According to the chart above, the total supply of CRV tokens will be 100% unlocked for all Allocations in August 2026 if there is no intervention in the token issuance time.
In particular, the intensity of token issuance will decrease around the beginning of 2025, which will help CRV tokens no longer be under too much selling pressure as before.
CRV Token Use Case
Recently, Curve Finance has made a change to the project’s tokenomics. In addition to the Liquidity Providing feature, you do not need to use the veCRV token. But to use other features like Staking, Boosting and Voting, you need to have veCRV token.
veCRV will be generated when CRV is locked on Curve for different terms. You can see details in Analysis of Curve Finance model.
- Liquidity Providing: Provide liquidity for DEX exchanges like Uniswap, Sushiswap,…
- Staking: Users can Staking CRV to receive transaction fees.
- Boosting: If you both hold veCRV and provide liquidity on Curve Finance, you will be rewarded 2.5 times compared to regular liquidity providers.
- Voting: System administration function through proposing and voting for CRV holders.
How to earn and own CRV Token
Currently, you can own CRV by buying directly at the exchange or providing liquidity to Curve Finance to receive CRV rewards.
CRV Token Wallet & Exchange
CRV Token storage wallet
CRV token is ERC20 token, you can store CRV token on Techtipsnreview Wallet with these simple steps:
Step 1: At the main interface, select Receive.
Step 2: Import CRV in the search box.
Step 3: Copy CRV wallet address and send CRV token to this address.
CRV Token Exchange
You can trade and sell CRV tokens on Techtipsnreview Exchange quickly and conveniently follow the steps below at: https://exchange.Techtipsnreview.com/
Step 1: Connect the wallet via Techtipsnreview Extension.
Step 2: At the main screen of Techtipsnreview Exchange, select Uniswap.
Step 3: Select Token to trade:
- Search for CRV.
- If the search does not come up, you can paste the contract of CRV into the search box: 0xD533a949740bb3306d119CC777fa900bA034cd52
Step 4: Enter the number of tokens you want to swap.
Step 5: Adjusted gas Gwei and slippage (slippage) on demand, then transaction browsing (approve) is done!
Besides, CRV has also been listed on many other exchanges such as:
Roadmaps & Updates
Curve Finance does not have a specific roadmap for future activities. But this is one of the teams operating in space DeFi are highly appreciated in the market through the way they build the project.
In a very short time, Curve Finance was available on Polygon and Fantom. While not generating much revenue yet, Curve Finance shows their vision at the forefront of any ecosystem.
Soon Curve Finance will enter Polkadot with the support of Equilibrium. You can see detailed information here.
Project team, investors, partners
Project team
Curve Finance’s project team seems to be more discreet than many other teams on the market like Compound, Sushiswap,… However, you can still follow them via Twitter, here are some of the members I’m looking for. Okay:
Private Andre Cronje is one of the very famous developers in the DeFi space, he is the founder of Yearn Finance and is also the backer of many projects of the Fantom ecosystem.
Investors
Updating…
Partner
Currently, development partners with Curve Finance include Fantom Ecosystem, Polygon Ecosystem, Equilibrium project.
In addition, Curve Finance is also a liquidity center and platform for other projects such as InstaDapp, Zapper, Zerion, 1Inch Exchange, Paraswap,…
Similar projects
Some projects operating in the field of AMM for stablecoins such as:
Curve Finance’s Future Potential
The future of Curve depends on whether Curve will generate a lot of revenue from Protocol.
Currently with a 0.04% fee for trading fees, revenue from trading fees will go to liquidity providers (LPs). In the future, Curve will collect transaction fees, the percentage will be decided by the CRV holder community through voting. As such, Curve needs to focus on creating large transaction volumes for revenue growth.
To do that, Curve can affect the following factors:
- Liquidity Providers: For Volume to increase, Curve needs to increase the number of LPs LPs increase, which means higher liquidity creates low slippage Leads to more traders trading on Curve because of small slippage Generates more trading volume (meaning higher trading volume). revenue increases) ⇒ As trading volume increases, LPs will have more revenue, drawing more LPs to participate ⇒ The loop continues.
- Projects/Holders: As the trading volume increased, the projects started wanting to be listed on Curve to create liquidity for the project’s tokens ⇒ More pools were created ⇒ Pulling in more traders ⇒ Trading volume increased again.
- DEVs: Trading volume continues to increase, creating a source of liquidity for layer projects and applications that can get liquidity from Curve.
This does not include programs Liquidity Mining of other projects combined with Curve Finance such as yEarn Finance did.
Epilogue
In a short time, Curve Finance, an unknown protocol, has become one of the protocols that have a great influence on the DeFi ecosystem on Ethereum. With the strong development of DeFi in the future, do you think Curve still has potential for growth?
Above Techtipsnreview has provided you with all detailed information about Curve Finance and CRV Token. If you have any questions or comments, please comment below for immediate support from Techtipsnreview!
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Source: What is Curve Finance (CRV)? CRV . Cryptocurrency Complete
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