What is Curve Finance? Learn more about CRV

As a believer in the DeFi village, do you know the hot name Curve Finance recently? It is so attractive that it has just launched Binance Listing. So to answer the question What is Curve Finance? but so attractive to the attendees, we should go to the following article.

What is Curve Finance?

Curve Finance is considered a defi decentralized trading protocol, designed for the sole purpose of efficiently trading stablecoins. Or the equivalent of a stablecoin is a 1: 1 anchored crypto asset.

Users can trade stablecoins with low slippage, low cost and high liquidity. Additionally, liquidity providers may also receive transaction fees and loan interest.

What makes Curve Finance different from others

The difference makes Curve Finance stand out. So what are the differences? It can be explained by the following three things.

Focus only on a stable asset niche

Curve Finance is often compared to Uniswap. To answer the question why choose Curve Finance instead of Uniswap. In it, Uniswap is known to be a super hot phenomenon in the famous defi point. This is an exchange that helps users swap tokens quickly.

By comparing with Uniswap, you can see that Curve Finance specifically focuses on the stable asset market. Accompanied by a curve that uses a formula to optimize the slip difference. You can see this difference in the graph below.

It allows users to provide liquidity in a variety of currencies

The next special feature of Curve Finance is that it allows you to not provide liquidity from many types of tokens. It will then perform an automated operation to divide these tokens into pool-proportional tokens.

For example, if you deposit 100 USD in sUSD, Curve will now automatically divide 100 USD per day into 25 USDT, 25 USDC, 25 TUSD, 25 sUSD if the ratio in the pool is 25%, for each token.

The stablecoins will trade directly with each other, for Curve Finance

For Uniswap, executing token exchange transactions will pay a very expensive fee. This is because when trading on Uniswap the tokens will be traded indirectly. That is, to go from token 1 to token 2, it must be via the ETH token. This leads to a doubling of transactions which makes trading expensive.

But for Curve Finance the stablecoins will be traded directly, so the transaction fee will now be halved, with the current transaction fee of 0.04%.

Furthermore, Curve is also designed with reduced slippage calculation, which reduces a lot of money with larger transactions.

CRV cryptocurrency

The fact that you become a liquidity provider for Curve Finance, the remuneration you will receive will be CRV currency. The amount of CRVs you get will depend on how much you provide liquidity and how long you provide your funds as a liquidity provider.

CRV is a cryptocurrency that will not be offered for sale or have ICOs.

As a matter of fact, CRV can help you make money or become a token for traders to conduct transactions across platforms. However, the real purpose of CRV originated as a governance token for DAO Curve Finance or CurveDAO.

Introducing secure CRV storage wallets

One proposition for physically secure CRV storage is the Coin98 wallet. Known as a non-custodial or non-custodial wallet, Coin98 Wallet allows you to store almost all current Blockchain cryptocurrencies.

CRV is an ERC-20 token, so you can safely store it in this Coin98 wallet. This is a fairly common wallet, so you will find its information easily.

In addition to storing in wallet, you can refer to how to store CRVs in reputable exchanges today in the market that lists them.

Where you can buy and sell CRV tokens

The liquidity of the CRV token is very high. It is proven that its total trading volume on exchanges is now up to $ 80 million per day.

CRV is currently trading on the following three exchanges: Binance, Uniswap, and BKEX.

A look at the curve in the future

Whether Curve’s future is “bright” depends on its protocol generating a lot of revenue.

With a 0.04% transaction fee, this revenue will go to the person providing the liquidity for the protocol.

For future revenue growth, Curve must generate a greater volume of transactions. When the transaction costs will be decided by the future CRV holders. To do the above, you can:

Promote the number of liquidity providers: This will affect each other’s liquidity, causing it to rise. From there, the impact on the slide will be less. Later, bring more people to participate in CRV transactions. And the goal of increasing trading volume will be successful.

An increase in trading volume leads to an increase in trading volume: This means that when the volume of transactions is increased, other projects will have the option of wanting to list to create liquidity for their project’s token. It leads to the creation of more and more swimming pools. And so many people trade CRVs. The ultimate goal will be to increase the trading volume.

Should you invest in CRVs?

Curve Finance a protocol in a short time has jumped to become a shining “star” in the DeFi ecosystem of Ethereum. and will it have enough potential and strength to develop further in the future?

As you know, the cryptocurrency market is a volatile place. Your decision to participate may be predictable of its risks. And the same goes for investing in CRV tokens.

There is not a single word of advice for you, as the volatility of the Crypto market is unpredictable. Surely at this point you have understood something about this type of token, right? And knowing this can help you understand the risks and benefits it will bring you if you decide to invest.

Like any advice before investing or not. The first thing you need to do is to learn carefully so as not to take unnecessary risks. As well as setting goals and having to follow the things you set out earlier in the investment process.

Curve Finance has always been a phenomenon in the DeFi “world”. Surely, through this article, you have also found yourself why Curve is so influential. In addition to knowing the CRV token briefly, right?

Closing the article is an introduction to a place where you can easily and freely trade Bitcoin, which is Fiahub. This is a reputable and safe place, you can freely buy and sell BTC. I always wish you success in life and successful investment, achieve the desired return.