Hello Publish0x community and welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.
With this article we are going to introduce the 23rd cryptocurrency of this section with the 48th “E&S” article.
Today we will talk about: Curve DAO Token (CRV)!
In the last token review, I talked about SushiSwap. If you missed my last crypto analysis, you can recover it below.
What is Curve DAO Token?
Curve Finance has quickly become a major player in Ethereum's decentralized finance (DeFi) ecosystem since its launch in January 2020. Offering users a means to earn returns on their cryptocurrency and exchange certain altcoins in a decentralized manner, Curve has quickly become one of the largest protocols in the DeFi space.
AMM (Automated Market Maker) is having a significant impact on the encryption environment. They are seriously demonstrating their capabilities in the field of stablecoin trading. Liquidity platforms such as PancakeSwap and UniSwap enable anyone who wants to become a market maker to reap the rewards.
Curve DAO Token is a DeFi aggregator that allows individuals to attach their valuable assets to various liquidity pools and receive rewards. It is an AMM protocol used to exchange stablecoins at cheaper prices and slippage. The idea of Curve DAO Token is to provide a solution for the high cost of asset exchange in the Ethereum blockchain. It is now the third largest DeFi platform. This is because it has a large amount of lock-in value. The Curve DAO token has a token called CRV. It serves as a governance value. The token market value at the time of issuance is slightly higher than that of Bitcoin.
Curve was not fully decentralized at launch. While users could access it via Twitter, Reddit or other forums, the direction of the Ethereum-based protocol was largely dependent on the Curve team. That changes with CRV, an Ethereum-based cryptocurrency that will launch in late July, and CurveDAO, a decentralized autonomous organization that will use CRV as its governance token. Unlike the cryptocurrencies released in 2017, CRV will be distributed through an incentive program rather than an ICO.
The maximum capitalization of the CRV offering will be 3.03 billion tokens. This supply will be distributed as follows:
- 61% (~1.85 billion) will go to liquidity providers. 3% (~ 90 million) from that 61% will be distributed to active liquidity providers prior to the launch of CRV.
- 31% (~939 million) will go to Curve shareholders. These shareholders are not publicly known, although they will be subject to a 2 to 4 year vesting period.
- 3% (~ 90 million) will go to Curve employees with a 2-year vesting period.
- 5% (~150 million) will go into a flammable reserve that will only be used in an emergency.
CurveDAO, which is a DAO leveraging the Ethereum Aragon-based decentralized organization manager/creator, will allow CRV holders to influence the direction of the protocol with a "time-weighted voting" system. The time-weighted system gives a more experienced CRV holder more weight in the decision-making process than a holder voting on a proposal for the first time. This system may make it more difficult for wealthy attackers to manipulate the protocol to their advantage. CRV will also use value capture mechanisms, blockchain mechanisms, and fee-burning mechanisms to promote liquidity provisioning, participation in governance, and cryptocurrency maintenance.
After briefly introducing what Curve DAO is and what is the CRV token, I invite you to follow me so you don't miss the second part of the article that will be released next Sunday.
We'll go more specifically into Curve Dao benefits, how to use it and others features of this project!