2022-12-19 15:06:19
Curve (CRV)Curve Finance is a decentralized exchange for trading cryptocurrency that focuses on efficient stablecoin trading.
On August 13, the Curve DAO and the CRV token turned 2 years old… Let's look at some of the major accomplishments they’ve had in this short period of time.
At its highest point, Curve held around $24 billion TVL on its platform. Even though that amount has significantly declined due to market conditions, Curve still leads other DEXs with $6.2 billion in TVL, respectively.
Curve’s voting and staking structure, called “vote-escrowed tokenomics” (or veTokenomics), has been a staple of how DeFi protocols should attract liquidity and has created a unique phenomenon known as the Curve Wars. Without going into the weeds, this model incentivizes users to lock up CRV for long periods of time in exchange for token rewards and more say in how the protocol runs.
If you would like to learn more, check out February's portfolio update where we talk about it in detail.
By locking up their CRV in the protocol, users receive veCRV, which entitles them to rewards and gives them voting power. The longer you lock your CRV for, the more voting power you have.
This same model has been adopted by some of our favorite projects, such as Balance. In last month’s update, we showed how Balance is capturing more value to its protocol with its new veBal token.
When locking up your CRV, you also earn a boost on your provided liquidity of up to 2.5 times. The goal is to incentivize users to participate in governance by rewarding them with a bigger share of the daily CRV inflation.
In total, over $100 million in fees have been distributed to veCRV holders. Last month, we also talked about the fact that more CRV is being locked up than is being released from emissions. Essentially, this means the rate of locked CRV is growing faster than the supply.
On July 5, Curve witnessed its largest day of CRV locks since inception. And prior to that, between June 31-July 4, users locked more CRV than the amount issued by the protocol. The total amount locked for July was 31,870,015, with an average lock time of 3.63 years. The total amount emitted and released into circulation was 7,275,220.
Another great thing about Curve’s birthday is that emissions get cut by 15% which happens only once a year. This will play a big role in driving more demand for the CRV token. As the supply gets reduced, it will have a positive impact on the price.
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