Curve DAO (CRV)

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You can deposit or withdraw CRV from Bitso using the Ethereum (ERC-20) network exclusively. Make sure you choose this network when transferring your coins.

 

What is Curve DAO (CRV)?

Curve is a decentralized exchange (DEX) protocol specialized in stablecoins. What it does is allow the trade and exchange of coins like USD Coin, Pax Dollar, Tether USD, and Dai without an intermediary. The protocol is built as a smart contract on top of both Ethereum and Polygon blockchains and optimized to offer better fees to traders and almost no slippage on stablecoins. Curve is also a decentralized autonomous organization (DAO), and uses its token, CRV, as a governance token. Users can also use both the token and the protocol to lock part of their funds within the exchange and use it as yield farming – and earn yields for their funds.

 

What makes it unique?

  • In decentralized exchanges, it is common that tokens suffer from slippage. That is, when the offer of that token is scarce or abundant, the price increases or decreases (even above or below the market's price). Curve, however, offers almost zero slippage for stablecoins. This price variation doesn't occur as roughly in there;

  • Curve offers lower prices in comparison to other DEXs for trading stablecoins;

  • Curve and Polygon partnered up to offer better yields for people that stake tokens within Curve. You can earn an extra amount for your staked tokens in CRV and MATIC. Although, this offer of extra yields is limited and can end any time soon;

  • Curve offers impermanent losses, which means that the tokens locked in the exchange for liquidity won't fall as the market price crashes. It works as a shield for bear markets (prices falling below 20%) and can prevent great losses. But you can't profit when markets go high.

 

Purpose

Stablecoins are a reality in crypto. They are, as it's said, the best of both worlds: crypto and borderless, but without the volatility that haunts cryptocurrencies. There are many stablecoins available out there, they are usually backed by the same asset, the US dollar. However, trading one for another isn't that simple. Your funds may suffer from high fees in some exchanges, or from slippage in decentralized exchanges, and you can lose money going from one coin to another. Curve's purpose is to solve this, precisely.  They offer both low fees and low slippage, while also offering great annual percentage yield (APY) for people that opt to lock their tokens within the protocol. Hence, it serves to facilitate the life of the stablecoin trader, as it greatly helps those who want to help provide liquidity to the protocol.

 

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