Binance Labs, the venture arm of the largest cryptocurrency exchange in the world, has committed to investing $5 million in the Curve DAO Token (CRV).
The potential integration of Curve on Binance's BNB Chain is also being explored
Binance Labs, the venture arm of the largest cryptocurrency exchange in the world, has committed to investing $5 million in the Curve DAO Token (CRV), which governs the Curve decentralized exchange (DEX).
The potential integration of Curve on Binance's BNB Chain is also being explored as part of this collaboration. The total value locked (TVL) on Curve, a stableswap and DEX, is about $2.4 billion.
However, it was the victim of a breach last month that cost it over $70 million due to a flaw in the Vyper programming language. This led to concerns in the DeFi community over the potential liquidation of Curve founder Egorov’s CRV loan positions. The hacker has since returned some funds, but not all, leading to a $1.85M public doxxing bounty for exposing the hacker.
Yi He, co-founder of Binance and head of Binance Labs, emphasized the importance of Curve in the DeFi market:
"Curve is the largest stableswap, and as a key protocol in DeFi it has contributed to the steady growth of the space in 2023. Given the recent events that have impacted the protocol, Binance Labs has offered our full support to Curve through our investment and strategic collaboration. We view this cooperation as a starting point and look forward to working together to further propel the growth of the DeFi ecosystem."
As a utility token for the Curve DeFi system, the Curve DAO Token incentivizes liquidity providers and supports governance of the protocol.
Following the announcement of Binance's investment, CRV experienced a 4.8% price increase to $0.64, before dropping back to $0.61.
