These days, decentralized exchanges are quite a popular phenomenon — it seems that the new ones pop up every day. Curve Finance is one of the better-known projects, having proved itself even before the current craze, so it’s no wonder that the Curve DAO token is in demand. To find out where this project is going as well as the Curve price predictions, read the article below.
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Curve Fundamental Analysis
Curve is a decentralized exchange platform for stablecoins that uses AMM (automated market maker) known as Curve.fi to manage the liquidity. The platform is optimized to provide low slippage and a low fee. Assets can be exchanged automatically and without permission. It’s a non-custodial platform, so the users have full control of their tokens.
To manage automated trading the platform uses liquidity pools. Curve relies on the liquidity pools and rewards users who fund those pools. Each liquidity pool contains the pair of tokens supported within the pool itself. Pools consist of similar assets to increase users’ profits and to reduce impermanent losses.
Curve offers users an option to lock the assets they hold for a long time (up to 4 years), so they can earn more liquidity and receive more in trading fees, which depend on the trading volume.
The project was launched in January 2020 by Russian scientist Michael Egorov and is known as a DeFi phenomenon. In the second part of the 2020 Curve DAO saw significant growth.
Curve DAO token is an Ethereum-based token that uses an automated market maker to allow users to swap between two similar ERC-20 tokens, including stablecoins such as DAI and USDC, and also Bitcoin tokens based on Ethereum, such as renBTC and wBTC. Curve token can be also used to govern the network.
The total Curve token supply is 3.03 billion coins with more than half of them (62%) distributed to the liquidity providers. The rest goes to shareholders (30%), to the community reserve (5%), and to the employees (3%). At the moment of publishing the circulating amount is 390 million tokens.
Curve Live Price Chart
Curve token price from the beginning of the year was following bullish trends and steadily growing. In 10 months token increased its value from the price level of $0.6 to $4.51 at the time of publishing. It gained over 600% during 1 year and was called “one of the most efficient DeFi projects”.
Main growth happened at the same period as most of the crypto assets grew. Curve token gained most of its price from the end of February till the beginning of June. After that following the whole crypto market going down it lost in value but recovered in a short time and increased in price rapidly.
Recently along with the whole crypto market bull run Curve DAO Token outperformed Bitcoin, Doge, and Shiba Inu in the weekly gains surging 74,49% in 7 days period.