What is Curve DAO Token (CRV)

Curve DAO Token (CRV) is used to power Curve.fi. The token is Curve Finance's cryptocurrency and is used for various functions. Therefore, without this token, Curve would not be able to work. For example, it is used for governance, but also for staking and transaction processing and execution, among other things. Below we tell you exactly what Curve DAO Token does, as well as where you can buy and store the CRV token.

What does Curve DAO Token do?

Curve DAO Token is a cryptocurrency that is used for Curve.fi. Users can buy cryptocurrency on Curve.fi. In fact, Curve.fi is a decentralized exchange (DEX) and automated market maker (AMM). The focus of Curve.fi is on ease of use: according to them, it should be as easy as possible to swap ERC20 tokens. In particular, this concerns stablecoins and Bitcoin tokens running on Ethereum.

The Curve.fi protocol is also made to minimize impermanent loss. This is a problem that many DeFi applications suffer from.

Users of Curve.fi can pin Curve DAO Token (CRV) to vote on certain decisions that need to be made. So the protocol is being developed based on what the community likes to see happen. Hence, 'DAO' is in the name of the token. Also, people who lock Curve DAO Token can receive fees for locking the tokens.

Users who lend their tokens to Curve's liquidity pool receive a reward for doing so. They receive Curve DAO Token in exchange for the work they have done. The more and the longer they lend their tokens to the protocol, the greater the reward for them will be. In this way, the team behind Curve wants to encourage users to provide liquidity to the platform.

People who receive Curve DAO Token as a reward can exchange these tokens for other tokens, although of course it is also possible to keep them. In fact, many crypto traders are investing in Curve DAO Token. They expect the price of CRV to go up in the future, so they keep their tokens in order to sell them later for a profit. Of course, it is important to do your own research on Curve DAO Token before you decide to invest in it.

Who created Curve DAO Token?

Curve DAO Token was conceived by the same people behind Curve.fi. Michael Egorov, a Russian researcher, is the founder and developer of Cure.fi and Curve DAO Token. Of course, he did not do this alone, because besides him there is a large team of people who help in the development of this protocol and cryptocurrency.

In the past, Michael Egorov also co-founded NyCypher, where he was also CTO for a time. At this company, they focused on developing privacy-based protocols and infrastructures for blockchains and cryptocurrencies. So Michael has a lot of experience within the crypto and blockchain world.

How does Curve DAO Token (CRV) work?

Curve DAO Token, like Curve.fi, runs on Ethereum's blockchain. Therefore, the token is also an ERC20 token. This is a type of protocol used by most tokens on Ethereum. You can think of such a protocol as a set of rules that a token must comply with. The moment such a token does not comply with the rules, it is not seen as a token. It is therefore unusable.

Curve.fi is a DEX and AMM that makes users suffer less from impermanent loss, and lets them pay a smaller slippage. Impermanent loss is seen by many people as a difficult concept to understand. Essentially, it means that users can lose money by discontinuing or swapping a token at the wrong time. Many applications within DeFi suffer from this problem. Fortunately, there are more and more protocols and applications that have found a solution for this.

Liquidity pools are used to allow users to swap tokens. When swapping tokens, tokens are exchanged between two addresses. Tokens that are in the liquidity pool are sent to the user. The tokens paid for by the user are sent to the address of the liquidity pool.

In advance, Curve determines the price of the trading pair. This price is therefore not directly determined by supply and demand. Cryptocurrencies are not exchanged directly for each other like on a central exchange. Central exchanges use an order book to determine prices and execute transactions.

Where to buy Curve DAO Token (CRV)?

You can buy Curve DAO Token (CRV) at Coinmerce. Before you can buy CRV tokens, of course, you need an account. This is where you create an account at Coinmerce. After you have created an account, you can immediately purchase CRV tokens. You do this by buying Curve DAO Token directly with iDeal, SEPA, Giropay, MyBank or Bancontact. It is also possible to first deposit money on Coinmerce, after which you can buy Curve DAO Token with the balance on your account. You will not pay any deposit fees for this.

Storing Curve DAO Token safely

After purchase, you can safely store Curve DAO Token in your Coinmerce wallet. This wallet is linked to the exchange, so you can also sell CRV again quickly. We keep most of our users' crypto tokens in cold storage. So there is no need to worry about the security of the Coinmerce wallet.

Of course, you also have the option to store CRV on your own hardware wallet. To do this, you need to send CRV to the wallet address of cold storage, for which you may pay transaction fees set by the blockchain network. Coinmerce unfortunately has no influence on the amount of these fees.