Should you invest in Curve coin?

Hi guys 😊

Despite only being launched in 2020, Curve has already solidified its place as one of the most competitive and leading players in the space of decentralized finance and is showing no signs of slowing down.

Built on the Ethereum blockchain, Curve (CRV) or also known as Curve Finance is decentralized finance that can facilitate seamless trade and liquidity between stablecoins and other digital assets. It is the brainchild of Michale Egorov, a Russian physicist who has been experimenting with various DeFi platforms since 2018. Learn more about this technology, Curve coin prediction and more below.

How does it work?

What makes Curve Finance different from other DeFis is that it’s designed to categorise cryptocurrencies, including stablecoins, with the same value in pools by liquidity providers. In return for offering liquidity, these providers or users will be incentivised.

Curve is made up of several pools. Currently, there are 17 pools with stablecoins such as USDT, USDC, DAI and BUSD while the rest are for wrapped Bitcoins or ERC tokens on the Ethereum Network that represent BTC such as wBTC, rentBTC and sBTC.

Curve uses deposited assets to provide liquidity through a technology called Automated Market Maker or AMM. This eases trading between stablecoins, resulting in lower fees and minimal slippage which happens when traders experience a price change when buying crypto. However, it’s important to note that if an asset doesn’t belong in the same price range, the formula used for executing the trade won’t take place.

What are liquidity pools?

In the DeFi ecosystem, liquidity pools are the foundation of facilitating seamless trades between assets. At its core, a liquidity pool is a digital pile of funds bound by smart contracts and funded by users who earn income through transaction fees. Every time they complete a transaction, a certain percentage of tokens is deposited into the liquidity pool.

This virtual ‘pool’ of money enables decentralised trading and lending. Liquidity pools give an advantage to both buyers and sellers because they offer leverage on pre-funded pools. This means that it offers cheaper fees and less slippage even when the asset being traded is illiquid. Illiquid assets are types of commodities that you can’t easily sell for cash without generating loss because of significant change in value.

What is the bonding Curve?

The bonding Curve is the line you see in the automated market maker equation that depicts the movement of the asset in the pool. It displays the relationship between the supply and price of an asset.

When a token is being purchased with tokens of similar value, the price tends to get more expensive and can exponentially increase to an infinite price that can cause more slippage and high fees.

What Curve Finance does is use its unique bonding curve to lower the price difference between stablecoins and avoid slippage when trading. This allows for instantaneous liquidity that doesn't require high fees.

CRV: Curve Finance’s native coin

CRV is used as Curve Finance’s native token that allows ‘voting’ to add new yield pools, change current fee structures and facilitate token burning.

A user’s voting power depends on the length of time their CRV tokens are locked inside the platform. ‘Locking up’ tokens in Curve Finance simply means you won’t sell your tokens and will just let them sit inside the platform. According to Curve, the maximum number of years a token can get ‘locked’ is 4 years, which grants the holder 2.5x voting power.

To encourage users to lock their tokens, Curve gives them returns as well as a percentage of the revenue they earn from transaction fees.

Where can you purchase CRV?

If you’re interested in buying CRV tokens, we’ve rounded up the best exchanges where you can buy them and their current Curve coin price:

Binance

Binance is one of the leading crypto exchanges in the world where you can purchase CRV tokens. As of writing, the price of the asset is at $1.68 with a volume of $19,475,111 while the volume percentage is at 16.07%.

Huobi Global

Huobi Global is a crypto exchange founded in China that is now based in Seychelles, East Africa. It’s one of the places where you can get CRV tokens for $1.69 as of writing. The volume of the asset is at $409,208, while the volume percentage is at 0.34%.

Kraken

Kraken is a US-based exchange founded in 2011 and is currently one of the leading places where people can acquire crypto. You can buy CRV tokens here for $1.678 as of writing. Currently, the volume of the token is at $198,358 and a volume percentage of 0.16%.

So, is Curve coin worth the investment?

Despite its fledgling status in the DeFi space, Curve has become one of the core platforms in the crypto and DeFi spheres today. Other blockchains are now reliant on its technology, proving that it’s functional and versatile in different types of crypto-related transactions. This 2021, crypto experts say that Curve coin price prediction can reach up to $3.66.

Moreover, its high yield rate is an appealing concept to both investors and users who want to minimize the risks involved due to fluctuations in price in Curve coin investing. Although what the future holds for Curve is still all speculation, the growing number of people using its unique technology shows signs of bullish growth in the coming years.

You are welcome to share your thoughts.

Cheers,
Karl
Bitcasino.io