Curve Finance (CRV) steals the attention of crypto experts and analysts. In short, Curve Finance is an automated market maker (AMM) that offers token exchange at a low cost and slippage rate.
Three factors make this platform closely monitored:
Yield Opportunities That Attract Investors
Users have the opportunity to stake tokens directly on the CRV with an average annual percentage yield (APY) of 21% and will be given a vote-escrowed CRV (veCRV) in exchange, enabling participation in administrative voting that takes place in the protocol. Users can also generate an increase of up to 2.5x the liquidity available on Curve with a vote-locking CRV.
If the demand for CRV deposits continues to increase and the available supply decreases, it is not impossible that there will be a bullish on CRV prices.
CRV Deposits That Become Grabbed
The two main competitors for CRV liquidity outside the Curve platform are: Yearn.Finance and Convex Finance. Both recorded handling records of around 29% of the available veCRV supply.
The high demand for CRV deposits has invited competition from the two platforms with each trying to come up with an attractive incentive offer for CRV owners. For example Convex offers APY up to 87% and Yearn, 45%.
This will put pressure on the CRV supply cycle for a long period of time.
Profits From The Provision Of Stablecoin Liquidity
Delphi Digital unveiled Curve among the DeFi platforms that managed to record revenue with an impressive record, 30d P/E of ~ 39.
Not only that, the stablecoin component for Curve has protected the platform from a sharp decline in total locked -in value (TVL) like most other DeFi platforms. Most recently, Curve recorded TVL totaling $ 9.34 billion, making the platform dominate the TVL chart of the DeFi platform.
Not surprisingly, analysts are optimistic with the growth of CRV as a protocol focused on stablecoin.
