On August 10, Binance Labs announced a $5 million investment in Curve DAO Token (CRV) in an effort to strengthen the DeFi platform following an attack.
Binance Co-Founder and Head of Binance Labs Yi He stated:
“Given the recent events that have impacted the protocol, Binance Labs has offered our full support to Curve through our investment and strategic collaboration.”
Though Binance Labs did not explicitly name the above-mentioned events, its description alludes to a recent attack on Curve Finance.
On July 30, an incident occurred that resulted in the theft of at least $60 million. Curve Finance reclaimed some of the funds on August 5 after offering a reward bounty to the attacker. The platform had recovered 73% of its stolen funds as of August 7.
Binance Labs also stated that the partnership will allow Curve to deploy on the Binance-affiliated blockchain BNB Chain. Curve is currently available on 12 blockchains, and this arrangement will expand its reach even further.
Labs also highlighted Curve’s strong market position, highlighting its low fees and slippage as well as its dominance among DeFi platforms. Curve is the largest “stable swap,” referring to the company’s focus on stablecoin trading.
Outside of that niche, Curve ranks highly. Curve is the seventh largest DeFi platform overall, according to Defillama data, based on total value locked (TVL). Curve currently has $2.4 billion in cryptocurrency locked up.
Curve Finance is powered by the CRV token
Binance Labs acknowledged that the Curve token (CRV) has a wide range of applications, emphasizing that it serves as a reward for liquidity providers and governance participants. It was stated that the token “powers the Curve ecosystem.”
The Binance exchange is one of the most active markets for CRV token trading. According to CoinGecko data, its CRV/USDT trading pair accounted for 18% of CRV trading volume on August 10.
Binance also has a number of other trading pairs with the token, which increases its share of CRV’s overall trading volume slightly.
At the time of writing, CRV was the 81st largest cryptocurrency, with daily trading volumes of $102 million. Its value has increased by 1.6% in the last 24 hours in an otherwise stable market.
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