𝗖𝗿𝘆𝗽𝘁𝗼𝗰𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀 𝗘𝘅𝗽𝗹𝗮𝗶𝗻𝗲𝗱: 𝗖𝘂𝗿𝘃𝗲 𝗗𝗔𝗢

$CRV (Curve) is built on Ethereum, but it not a Layer 2. It runs on top of Layer 1s, mainly Ethereum but it does operate on top of $ARB (Arbitrum) and Optimism. Curve DAO is the decentralised organisation that governs Curve Finance. It's a platform that's designed to let people swap stablecoins directly, like USDT and USDC, with very low fees and pretty much no slippage. Curve is optimised for assets that are meant to stay the same value, ideal for traders and DeFI protocols that need predictable stablecoin liquidity. CRV was launched in 2020 with a maximum supply of 3.03 billion tokens.

When you use a centralised exchange like Binance or Coinbase, you have to deposit your funds which means you give up custody, even if only temporarily. That introduces counterparty risk. Curve is non custodial! You always keep control of your crypto in your own wallet and no one can freeze it, block it or stop you from accessing it.

The Flywheel Effect:

This is what I really like. A really simple and neat idea.

🎡➡️Users can lock up their own CRV tokens to receive voting power (called veCRV)
🎡➡️It lets you decide on how the protocol works, but beyond this, locking CRV up gives financial benefits.
🎡➡️Users who lock up their CRV get a portion of the trading fees generated.
🎡➡️As more people trade stablecoins, more volume flows through the platform.
🎡➡️This volume generates more trading fees which are distributed to those who locked up their CRV.
🎡➡️This creates incentive to reduce amount of CRV in circulation, making the token more valuable as buying pressure comes in.

This positive feedback loop, the flywheel, is what gives Curve DAO its unique momentum in the DeFi world.

As of now, roughly 404 million CRV tokens are locked in the vote escrowed system (veCRV), which represents about 30% of the circulating supply. A third of all CRV in circulation is locked up! This shows strong commitment from long term holders who aim to govern the protocol, earn a share of the trading fees and boost their CRV emissions.

Curve is typically cheaper and has less slippage than Uniswap when swapping stablecoins, because it uses a specialized algorithm designed specifically for assets that stay close in value.

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