cryptocurrencies

Curve DAO - Everything You Need to Know About Curve DAO

Daksh Murkute | | |

People claim that the cryptocurrency market is unpredictable, still, after Bitcoin's triumph, we all witnessed a cryptocurrency market explosion. Many coins started coming with interactive projects. CoinMarketCap has thousands of such projects registered.

 

There is no central authority to govern, no bank comes in its way. This provides the investors with a sense of freedom. 

 

But the main problem with such coins is their volatility, the price of any coins can change in friction of seconds. So to overcome this, Stable coins came into existence, and to maintain them, exchanges came into existence.

 

One such exchange is Curve DAO. In this blog, we'll discuss about Curve DAO and its token CRV.

Contents

What is Curve DAO?

History of Curve DAO

How does it work?

CRV token

How to get CRV

What has it achieved so far?

Features and benefits

Current market capitalization

Conclusion

 

 

I've always fantasized about how much money I'd have if I'd acquired some Bitcoins at the appropriate time, a lot of money, right? Although the tides have turned now, we must acknowledge that Bitcoin and Ethereum have altered the way many investors think about money. Is crypto safe and legal or not that's another question.

 

People think that the fluctuation of these cryptocurrencies is entirely left to the market.

 

And, based on past experience, one thing is clear: "Prices in the crypto market can fluctuate dramatically from one moment to the next."

 

As a result, investors sought a safe haven from this volatility, and that is why stablecoins were established.
 

“A stablecoin is a currency whose value is linked to an external asset such as US dollars, gold, or euros. And the coin's value is stabilized in respect to these other assets.”

 

  1. DAI, USDC, Paxos, etc. are known as stable coins.

  2. All the major stablecoins are tied up at $1,

  3. Yes, there are slight fluctuations but it is more or less lossless in the long run.

 

We can exchange these coins in various stable coin exchanges; one of them is Curve DAO (Decentralized Autonomous Organization).

 

What is Curve DAO?

 

Curve DAO logo

 

  

 

You go into the restaurant and order your favorite food, you sit there, eat food then you pay the restaurant, this is called an exchange. You exchange money for food. 

 

So, Curve DAO like a restaurant is a,

 

“It is a DeFi exchange platform that can be used by users to exchange their stable coins with others, but with low handling fees.”

 

  1. Unlike other stablecoin exchanges, Curve DAO uses liquidity pools to achieve its goal; liquidity pool is a collection of tokens locked in a smart contract connected by Aragon.

 

  1. Curve DAO realized that the old mechanism doesn’t work very well so it introduced liquidity pools in its project.

 

The benefit of liquidity pools is:

 

“We don’t have to depend on external market makers to provide liquidity to an exchange.”

With this specialty, it entered the market. And now it has many coins in its exchange.

 

Curve DAO supports:

  1. DAI coin,

  2. USDC coin,

  3. USDT coin,

  4. TrueUSD coin,

  5. Binance USD coin, and

  6. Synthetix USD coin,

 

It also supports Bitcoin pairs.

 

 You can trade among all these coins quickly and efficiently as compared to other competitive exchanges

 

History of Curve DAO

 

history of curve DAO

 

Michael Egorov was the founder and CEO of Curve DAO. He has years of experience in the cryptocurrency business. Curve DAO finance launched its token in 2020 and the total supply was 3.03B with an initial supply of 1.3B tokens.

 

How does it work?

 

working of curve DAO

 

Curve DAO’s platform is very easy to use,

 

  1. Its 90s style interface is easy to understand.

  2. It allows anyone in its platform.

  3. You just have to choose the coins you want to exchange and it will exchange them for you,

 

As easy as that.

 

Let’s understand the behind the scene of Curve DAO.

  1. Curve DAO uses an AMM mechanism to follow the behavior of other market makers in the crypto market.

 

(AMM -Automated market maker is a type of exchange technology that follows a mathematical formula to value assets)

 

  1. Curve DAO comes up with the StableSwap algorithm specifically for stablecoin transactions, with the help of it slippage will be low and the fee will be less.

 

CRV token

CRV is Ethereum based Curve DAO’s governance token. Anyone who holds the CRV can participate in the online governance of Curve DAO in the future. The initial supply of 1.3B tokens was distributed among various team players.

 

Let’s understand CRV’s supply

  1. 62% of CRV is distributed to liquidity providers.

  2. 30% to investors

  3. 3% to employees

  4. 5% reserve for the community

 

How to get CRV

 

You can get CRV in two ways.

  1. You can become a liquidity provider to Curve DAO
     

  2. You can buy them from exchanges.

 

What has it achieved so far?

 

what curve DAO achieved

 

  1. It has a pool deposit of $9 Billion, due to which Curve DAO is among the top DEX (decentralized exchange) in the world. 

 

  1. They have also launched cross-asset swaps on Curve DAO.

 

Cross-asset swaps allow the traders to trade between different Curve DAO assets, in the Curve DAO, as long as they share a pool with a Synthetix (like stable USD, stable EUR, stable BTC, and stable ETH) and can handle seven and eight-figure trades with no slippage. 

 

 (Synthetix is like an exchange that brings non-blockchain based assets like gold, silver, fiat money, etc. into the crypto ecosystem) 

 

  1. To keep the Curve DAO system secure from all the malicious activities in the finance world, they’ve introduced a bug bounty program. So if you find any flaw in the Curve DAO system, tell them and earn money.

 

  1. They’ve also introduced a new retro-modern User Interface, they are not going to replace the existing one with a new one but it is an alternative option for the Curve DAO users.

 

Features and benefits

 

benefits of Curve DAO

 

  1. Curve DAO is all about efficiency.

    1. It is about swapping stable coins with no slippage and a low fee.

    2. It allows users to provide liquidity to facilitate those swaps and earn trading fees for it.

    3. Curve DAO is primarily focusing on its protocol; its focus is on building the most efficient tools for swapping coins over the blockchain.
       

  2. The team of Curve DAO also said in an interview that they are closely working with many other DeFi teams.
     

  3. Yearn (iEARN) and Andre Cronje have helped them to make Curve DAO, and they are also in touch with Synthetix, REN protocol, and the Waves team.

 

Current market capitalization

 

Curve DAO DAO Token price is around $1.38 at the time of, the current CoinMarketCap ranking is #97, with a live market cap of $653M. It has a circulating supply of 373M CRV coins and a max. supply of 3.3B CRV coins.

 

"If we talk about stable coin exchanges in the world, Curve DAO is the best in the business."

 

Conclusion

 

The Curve DAO token is a DeFi protocol that has shown some guts in the market. It allows its users to complete different types of transactions and its beautifully crafted smart contracts provide security and safety. Curve DAO’s no slippage algorithm is best in the market. There is no harm in holding some of the CRVs in your hand.

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