What is Curve DAO Token?
Curve DAO is a DeFi platform optimized for efficient stablecoin trading. Users can participate to earn rewards by providing liquidity to the platform.
Essential details:
- Curve DAO Token is a native currency on the Curve decentralized exchange platform where users can participate to earn rewards by providing liquidity to the platform. Orders are processed using automated market making (AMM) technology to provide low slippage for traders and minimize risk for liquidity providers.
- The Curve project was launched in January 2020 along with the Curve DAO Token (CRV). Besides using AMM, the platform also integrates Aragon to connect multiple smart contracts.
- Curve mainly operates on the Ethereum network, but is also available on the Polygon, Fantom, and xDAI networks.
- The Curve smart contract is audited by the best in the industry – Trail of Bits, and also Quanstamp.
Insights:
- This Blockchain technology is built to eliminate intermediaries, however due to the limited transactions a decentralized system can accommodate, and the steep learning curve to access a fully decentralized product, centralized services exist. A decentralized exchange platform such as Curve could have a big potential due to the technology growth, the liquidity growth, as well as the blockchain ecosystem, especially decentralized finance growth.
- Curve is ranked 7th on the Dappradar Top DeFi rankings.
- At the current coin market price, Curve is estimated to hold around $7 billion liquidity on their platform (TVL).
One of the main challenges that the DeFi platform built on Ethereum blockchain faces is the high transaction fee the network charges. Despite these facts, Curve is able to onboard traffic to their platform. The migration of Ethereum to PoS (ETH2.0) might increase the value of Curve platform due to the vanishing barrier of transaction fees.
Whitepaper: https://whitepaper.io/document/622/curve-dao-token-whitepaper
Website: https://dao.curve.fi/
