It’s hard to imagine the Decentralized Finance (DeFi) ecosystem without Curve Finance. This community continues to pioneer global liquidity exchange technology and luckily, investors can now directly invest in Curve (CRV) within their Crypto IRA / 401k retirement accounts at iTrustCapital.
What is Curve Finance?
Curve Finance is a decentralized exchange platform that allows users to swap between different tokens and stablecoins. It’s specifically designed so that users can exchange similar assets (ex: USDC & USDT) with incredibly low fees and slippage.
Curve can be referred to as the Uniswap for stablecoins and other like-kind assets (ex: sBTC & wBTC). This has allowed it to become one of the most popular DeFi protocols. The DeFi protocol has 17 pools that facilitate swaps between different stablecoins and assets. The pools are subjected to market demands, and prices change based on natural market forces.
Automated market maker (AMM) and advanced bonding curve technology is used by Curve, which avoids the traditional order book to determine the price of crypto-assets. Instead, liquidity providers earn rewards from trading fees and interest accrued when they deposit their assets into Curve Finance.
Curve Finance History
Curve Finance does not have any recognized founder, as the protocol contract was initially deployed anonymously through Tornado Cash. However, the protocol was introduced to many by crypto stakeholder Michael Egorov in early 2020.
Egorov has been an active participant in the DeFi space since 2018 and has emerged as the leading figure in the Curve Finance ecosystem. Other key developers include two developers Angel Angelov and Ben Hauser. In addition, there is a large grassroot community of contributors and developers including Julien Bouteloup and Andre Cronje.
Curve is known for its automated market maker, and this unique mechanism has transformed the DeFi sector since its inception. Benefits of AMM technology include:
- Full automation with zero downtime (24/7 trading)
- Removes middle-men, allows for direct person to person trading
- Multi million dollar orders can be executed within seconds, for incredibly low fees
- Users can deposit their assets in order to earn yield on idle assets
Curve Finance Bonding Curve
Unlike other decentralized exchanges whose bonding curve serves different types of crypto-assets. Curve’s bonding curve is focused on stable coins and like-kind assets. This ensures that users can trade greater volumes with minimal changes to their respective prices. A unique benefit of Curve’s bonding curve is that the pricing of assets is transparent and completely decentralized using smart contracts. Curve also supports a decentralized autonomous organization (DAO) that allows users more influence on the project’s direction.
The CRV Token
The Curve Finance native token is CRV. CRV was launched in 2020, through a fair distribution. The allocation plan allows CRV to be distributed to liquidity providers (users) of the platform, which is partially subject to vesting. CRV will be have a max supply of 3.03B Curve, which gradually is released to users of the platform over time.
CRV serves as both a utility token and the governance token, which gives holders the right to participate in the decision-making process and vote on proposals.
Curve Finance is a unique DeFi protocol that has proven to be popular among liquidity providers and traders alike. It provides an excellent platform to swap between different stablecoins, as well as tokenized/synthetic/wrapped versions of other assets. Curve plays a crucial role in DeFi, including being a backbone to Yearn Finance. It’s not likely that this giant is unseated anytime soon.
Tax Free CRV
Curve Finance is seeking to become a global liquidity protocol for the world, and if that becomes a reality it’s likely that CRV will accrue a substantial amount of value. Investors that want to trade Curve (CRV) tax-free can now easily do that within their Crypto IRA at www.iTrustCapital.com
Important Note: All investments involve substantial risk of loss. All trading strategies are used at your own risk and you are responsible for the financial resources you utilize. If the market moves against you, you may sustain a total loss of the initial amount you allocated to the investment. you should not engage in trading unless you fully understand the nature of the transaction you are entering into and the extent of your exposure to loss. If you do not fully understand these risks, you should seek independent advice from your financial advisor. iTrust is not an investment specialist, tax specialist, financial planner (certified or otherwise), or retirement advisor, and iTrust does not provide investment advice, tax advice, financial planning services, or retirement planning or retirement-specific advice. iTrust facilitates the purchase of digital currency and precious metals, nothing more, and charges a fee for the service it provides. All investment decisions are made by iTrust users. Please read the full Risk Disclosure.