What is Curve DAO Token (CRV)?

The Curve DAO Token (CRV) is a decentralized cryptocurrency that allows people to trade with stablecoins. Contrary to the popular order books that most exchanges use, Curve uses an Automated Market Maker (AMM). This creates a liquidity pool that allows investors to easily trade digital coins.

Curve is a non-custodial exchange platform, so users are in charge of the safety of their funds. This platform offers low slippage and transaction fees for all customer transactions.

The Curve DAO Token is the native token of the Curve cryptocurrency exchange. This ERC-20 token makes it easy to exchange other tokens like Ethereum-based Bitcoin tokens and stablecoins on the Curve exchange.

The Curve liquidity pools are created to host similar assets, as this can prevent impermanent loss. So, investors will mostly see liquidity pools of assets like DAI, USDC, and USDT.

Who Created Curve DAO Token (CRV)?

Michael Egorov founded the Curve crypto and the Curve DAO Token in 2020. This Russian scientist is not new to the crypto scene as he co-founded NuCypher. Apart from establishing this company that builds privacy-preserving protocols, Michael also founded Loancoin, a decentralized loan network.

How Does Curve DAO Token (CRV) Work?

The Curve DAO Token is the driving force behind the Curve cryptocurrency exchange. It enables the smooth and automated execution of every transaction on this platform.

The liquidity pool this platform uses is contributed by the owners of Curve DAO Tokens. Each pool is formed by matching pairs of cryptocurrencies, which reduce the chances of impermanent loss. These liquidity pool contributors are awarded a portion of the trading fee whenever a user makes a trade.

Is Curve DAO Token (CRV) A Good Investment?

The Curve DAO Token (CRV) hasn’t been in the market for long. Its unique concepts, however, drew many consumers and cryptocurrency traders. When paired with its low transaction and slippage fees, it’s only logical for CRV to expand.

This virtual coin’s technical capacity and unique features have greatly aided the world of decentralized finance (DeFi). Unlike Ethereum, which uses its smart contracts with an order book, Curve pairs its smart contracts with an AMM. This provides a much higher level of efficiency, which many investors appreciate.

The Curve blockchain works by connecting users with the best channels for conducting their exchange at the lowest prices. These days it’s hard to see a DeFi enthusiast that doesn’t know bout the benefits of Curve. As such, investing in Curve DAO Token is a good decision that wouldn’t change for a long time.

The CRV can be purchased on various cryptocurrency exchanges. Some popular options you can try include Kraken, Coinbase, Binance, and Gemini. Acquiring CRV on these exchanges requires exchanging with another cryptocurrency or purchasing the token with fiat currency.

Since the Curve exchange is not a custodial platform, users would need to store their cryptocurrency themselves. Besides online wallets like the Coinbase and Binance wallets, you can try offline wallets like the Trezor Model One.