Curve to complete the initial mining liquidity, this is the game the whales?
Curve gets nearly half of the 20 whale sites awarded for initial flow mining.
The original source: babbitt
On August 10, market watches DeFi project Curve announced its governance tokens of the initial advance mining (pre - launch) activity has ended, and it is understood that the event attracted more than 9000 addresses, total 151.5 million carved up in the CRV tokens (accounting for 5% of the total), and there are 20 whales address reward accounted for 45%, therefore, some people called it belongs to the whale's game.
CRV hasn't been officially launched yet, according to Curve, and the current page is just for participants to show off their rewards.
By definition, Curve is a liquidity aggregation protocol, colloquially known as a decentralized exchange (DEX), and it focuses on the trading of stable and bitcoin anchor COINS.
Since its launch in January 2020, Curve has quickly become one of the leaders in the eether Lane decentralized Finance (DeFi) ecosystem. According to data of DefiPulse, Curve Protocol has a locked value of $246 million and currently stands second in the DEX category.
Like many other DeFi protocols, Curve was not fully decentralized when it was introduced and was managed by the Curve team, led by Michael Egorov, Ph.D., a physicist and founder of NuCypher.
This means that, although the Curve can be a great concept and plan, but it as a protocol, and is easy to be affected by a single entity's decision.
To address this issue, Curve plans to introduce a governance token "CRV," which will make Curve a decentralized autonomous organization (DAO). Before we get started, let's take a closer look at the Curve platform in detail.
What is the Curve?
As mentioned earlier, Curve is a protocol that focuses on providing a platform for users to easily exchange certain Etherean-based assets. As Curve founder Michael Egorov explained in a recent interview:
"When it comes to Curve, it's an exchange specifically designed for stable and bitcoin anchor COINS on Ethereum."
You may ask, in addition to focus on the dollar stable currency (such as USDT, USD Coin and DAI) and the currency anchor currency on the etheric fang (such as renBTC and WBTC), the Curve with the rest of the order book of DEX what's the difference?
Answer is somewhat complicated, but in the end is trading as well as the provision of liquidity in a different way.
Unlike traditional decentralized exchanges, Curve USES an automated market-making algorithm to increase market liquidity, making Curve an automated market-maker (AMM) protocol.
Because its algorithms are designed for stabilising and bitcoin anchoring COINS, Curve is far more liquid than any other DEX, founder Egorov said in an interview.
"The key to Curve is its market-making algorithm, which can provide 100-1,000 times more market depth than Uniswap or Balancer, with the total value of the lock unchanged."
This means that traders, and even some power users, can easily exchange their stability coin for another (as long as the Curve pool is supported) with minimal transaction costs and slippage points.
According to the Curve itself as of July 21, according to the Compound in the pool of liquidity providers (LP) annualized return of 5.51%, although the rate of return sounds attractive, especially in a rate of 0% and the legal currency of the world), but must pay attention to, to provide a reserve pool encryption is currency risk.
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The risk of providing liquidity to Other AMM DEX such as Curve, Balancer & NBSP;
Use the Curve and other AMM protocol is the main risk of the uncertain losses (IL) risk.
Say simply, volatile loss refers to the encrypted currency into automatic market-maker agreements (such as the Curve or Balancer), rather than these assets losses which might result in the wallet. When liquidity pool tokens when prices fluctuate split (such as A jump, not risen, B), the volatile loss will appear.
But it's worth noting that because Curve is focused on trading in stability COINS and bitcoin anchor COINS, the prices of the two reserve assets are almost in sync, so this volatility loss (IL) is minimal, making Curve a better liquidity provider than Uniswap.
In addition, since the DEX is used to interact using smart contracts, participants may also be exposed to contract vulnerabilities.
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What is CRV? & have spent
The above simple Curve is introduced, and then let us know the CRV what in the world.
As mentioned earlier, Curve is relatively centralized in the early stages of its release, and while users can get involved via Twitter, Reddit, or other forums, the direction of this Ethereum protocol is largely up to the Curve team.
To solve the CurveDAO problem, it decided to introduce a CRV governance token and a CurveDAO decentralized organization.
To the ICO allocation of 17 years is widely used in different ways, CRV will pass liquidity mining (also called yield farming) manner, according to preliminary scheme, CRV biggest supply will reach 3.03 billion, of which about 61% (1.85 billion) CRV will be allocated to the liquidity provider (LP), and at the end of yesterday's initial liquidity mining activities, 5% of the CRV 151.5 million (CRV) have been assigned to the liquidity provider (LP), And these tokens are locked in for a year.
Then 31% of CRV, or about 939m, will be allocated to Curve's investors, whose identities have not been disclosed but who will have a lock-up period of two to four years.
Then there will be 3% (about 90 million) CRV will be allocated to the Curve of the staff, and the lock up period of 2 years.
The last 5% (about 150 million) CRV will enter combustible reserves, these spare tokens are available only in an emergency.
In addition, CurveDAO is a customized DAO by Aragon, it will allow THE CRV holder to influence the development direction by "time weighted voting". This method of voting gives experienced CRV holders a greater voting weight, thereby reducing the influence of wealthy holders.
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The whale mining game & NBSP;
Curve's initial fluid-mining activity ended when ethereum reached 1062759, according to a Twitter post from Curve team member Charlie, which attracted about 9,400 addresses and split about 151.5 million CRVS.
One participant said he invested about $250,000 in stability COINS to participate in the mine, but received only about 1,000 CRV tokens.
, according to official statistics, according to one of them struck 31.9 million whales participants CRV, accounts for 21.07% of the event reward, in addition, there are 19 whale address dig CRV more than 1 million, most address divvied up the remaining few CRV Token.
From the point of this result, the whales has clearly dominated the Curve, in addition, according to qkl123.com, according to data from the past 24 hours, the Curve platform of just 141 active users, but the platform trading volume was over 12.6 million dollars, the users of the Curve is more level players for whales.
It's worth noting that CRV hasn't been officially launched yet, according to Curve, and the page currently offered is just to show participants the rewards they've received, while others have noted that someone has already posted a fake CRV token.
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