The Curve Finance is a decentralized exchange specially built for stablecoins. This exchange allows users to manage liquidity. This project gained attention in the market due to the special protocol it uses to manage liquidity in the market. The protocol it uses is AMM which is a short form of the automated market maker.
AMM is simply a type of exchange that uses algorithms to facilitate crypto trading. They avoid the traditional order book method of buying and selling to make interactions between buyers and sellers.
The main brain behind this exchange is Michael Egorov. He is a Russian scientist, who has experience with cryptocurrencies and is currently the CEO of this exchange. He also founded the famous decentralized bank for cryptocurrencies called the Loan Coin.
Some major advantages of this protocol are that it is specially designed to offer the lowest losses and the lowest trading fees; this allows investors to earn higher profits and spend less on trading fees and other expenses. Due to this feature, curve finance is the favorite instrument for traders who trade stablecoins and also for those who want minimum slippage while trading.
Another big advantage of the protocol is that it offers its users a higher profit margin due to no risk of impermanent losses. Impermanent losses occur when the ratio of the AMM changes. But there are very less chances of such losses in the liquidity pool of Curve finance.
They offer a new, cheaper, and direct way of token exchange services.
Curve token was launched in August 2020 to serve as a governance medium, incentive structure, and fee payment method. The total token supply of the curve token is 870,633,496 CRV. With a huge market cap of $541,134,722, this project ranks 68 on the coin market cap in terms of market cap and it also has a max supply of 3,303,030,299 CRV.
In curve finance staking can be done and in curve finance DAO locker. Interestingly there is no minimum requirement for the same. Users can choose the staking period according to their requirements. This allows users to claim their CRV reward regularly. For expecting the best rewards users are advised to stake their curve token weekly.
Interestingly CRV did not feature any ICO. It follows a different procedure for its mining as compared to other tokens in the market. It can only be mined by Stake drop or Apy mining methods.
A big chunk of the Curve DAO token is reserved for the employees which is equal to 30%. While 62% of the tokens are reserved for the CRV futures.
This network focuses more on security because it follows the DAO governance method. It means that there are no board members of the company. All the important decisions related to the firm are taken by its community members, which ensures true decentralization of the project. It eliminates the chances of it being influenced by the perspective of a single individual. .