Decentralized finance has been one of the most well-performing sectors of the cryptocurrency market. The finance ecosystem has been dominated by Wall Street giants that have resulted in calculated disasters like the financial crises. Moreover, big firms are also geared towards the elite while exploiting the non-elite. This current dynamic has resulted in a boost of decentralized finance which is advocating for the shifting of finance to the blockchain in order to eliminate centralized intermediaries – making processes more transparent and efficient. Curve is one of the leading DeFi projects that is one of the forefronts of the decentralization of finance. In this guide, we will delve deep into what the project is all about.
What is Curve?
The Curve DAO was founded in 2020 by Michael Egorov – a Russian scientist. It is one of the recent DeFi projects but has garnered a huge following in a short time because of its offerings. Curve is a blockchain-based decentralized exchange which utilizes an automated market maker (AMM). A decentralized exchange operates in a similar manner to conventional exchanges albeit more democratically.
The Curve protocol enables the trade of digital tokens through smart contracts without any centralized intermediary. The AMM system also ensures that there is less slippage in the system and users are provided the lowest fees possible. It is primarily focused on Bitcoin tokens on Ethereum and stablecoins. It is a non-custodial platform – empowering users. It is one of the top-used protocol for ERC-20 tokens and stablecoins.
The Curve DAO Token is responsible for the smooth functioning of the protocol. It is used for transactions and is also utilized to incentivize liquidity pools. Users are incentivized to deposit their assets into pools and, in return, earn the Token.
Future outlook
Being one of the key decentralized finance platforms, Curve enjoys a good position in the market. Proximity recently launched a $350 million fund for NEAR Protocol. Leading DeFi projects like Curve are expected to soon function on the secure and scalable blockchain on Near. This step will boost the value and userbase of the network by many folds.
According to the estimates of Wallet Investor, the cryptocurrency is expected to operate at a price level of $4 in a year’s time while the five-year projection places it at $9. Digital Coin Price is even more bullish on the cryptocurrency and projects a year-ending price of $6. The price by 2026 is predicted to be at $14.
