Curve is a decentralized finance (DeFi) ecosystem that offers several main products:
* Curve DEX is a decentralized exchange tailored for stablecoins and assets pegged to a certain value, using an automated market maker (AMM) to handle liquidity efficiently.
* The crvUSD decentralized stablecoin issuance application lets users borrow stablecoins using secure assets like ETH and BTC as collateral, with mechanisms in place to protect against collateral liquidation.
* Curve Lend provides a lending platform where users can operate in isolated markets, borrowing crvUSD against various assets or lending crvUSD for interest. It employs the same LLAMMA Lend engine as crvUSD.
* Savings crvUSD is a decentralized stablecoin that includes built-in yield.
Who Are the Founders of Curve?
Michael Egorov, a Russian scientist with a rich background in cryptocurrency ventures, is the founder and CEO of Curve.
In 2015, he co-founded NuCypher, a company focused on creating privacy-preserving infrastructure and protocols, where he served as the Chief Technology Officer.
He is also the mind behind LoanCoin, a decentralized network for banking and loans.
Curve's core team is part of the CRV token allocation plan, with tokens distributed over a two-year vesting period as outlined in the initial launch strategy.
In August 2020, Egorov admitted he "overreacted" by locking a large portion of CRV tokens. This move was in response to yearn.finance's influence, ultimately giving him 71% of the governance power.
What Makes Curve Unique?
Curve stands out by staying true to its mission as an AMM designed specifically for trading stablecoins.
The introduction of the DAO and CRV token enhanced its profitability potential, as CRV is used for governance, rewarding users based on their liquidity contributions and the duration they hold their assets.
The surge in DeFi trading has helped secure Curve's place in the industry, with AMMs facilitating massive liquidity flows and user profits.
As a result, Curve appeals to those participating in DeFi activities like yield farming and liquidity mining, as well as those who seek to earn returns with minimal risk by maintaining stablecoins.
The platform generates revenue by charging a small fee, which is then distributed to liquidity providers.
How Many Curve (CRV) Coins Are There in Circulation?
Curve (CRV) was launched in August 2020 alongside its DAO. It serves as a governance tool, incentive mechanism, and fee payment method, as well as a long-term revenue source for liquidity providers.
The total supply of CRV is 3.03 billion tokens, with the largest portion (62%) allocated to liquidity providers. The rest is divided as follows: 30% goes to shareholders, 3% is for employees, and 5% is set aside as a community reserve. The allocations for shareholders and employees are subject to a two-year vesting period.
There was no premine for CRV, and with the gradual release of tokens, it is expected that approximately 750 million tokens will be in circulation one year post-launch.
How Is the Curve Network Secured?
Curve faces typical risks linked with depositing funds in smart contracts and interacting with AMMs, particularly impermanent loss.
Since Curve focuses on stablecoins, it minimizes the risk of rapid market fluctuations, though users can still incur losses when markets are rebalanced to align with cross-market prices.
Curve has undergone auditing, but this does not eliminate the inherent risks associated with exposure to a particular cryptocurrency.
Where Can You Buy Curve (CRV)?
CRV is readily available for trading against cryptocurrencies, stablecoins, and fiat currency pairs on leading exchanges.
Notable platforms include Binance, OKEx, and Huobi Global, which together account for the majority of the trading volume as of September 2020.
Are you new to cryptocurrency and want to learn how to buy Bitcoin (BTC) or other tokens? Check out the information available here.
