Binance Labs, a division of the popular cryptocurrency exchange Binance that invests in emerging projects, has allocated $5 million to support Curve (CRV). The curve is a specialized token used on a platform for the decentralized trading of stablecoins.
Curve operates as a significant system for exchanging stablecoins and stands as the second-largest decentralized exchange (DEX). It currently holds approximately $2.4 billion in total value and facilitates around $215 million worth of daily trades.
On August 10, Binance Labs revealed this investment. Yi He, a key figure in Binance’s inception and leader of Binance Labs, expressed their full backing for this decentralized exchange, especially considering recent operational challenges.
However, Binance Labs’ financial support for Curve comes with an arrangement. As a result of this investment, Curve will integrate with the BNB Smart Chain. Previously, Curve functioned across various blockchain networks. Originating on Ethereum, it has evolved into one of the prominent market makers in the realm of decentralized finance (DeFi), featuring numerous active pools.
It’s worth highlighting that around July 30, a substantial amount of funds, totaling $73.5 million, was withdrawn from Curve’s pools due to an issue in their setup. The individual responsible for this withdrawal discussed the matter within the Ethereum community and subsequently returned most of the funds.
They clarified that their motivation for returning the funds wasn’t due to being caught, but rather a desire to preserve the project’s integrity. This action prevented approximately $100 million in loans tied to various DeFi systems from being liquidated.
These loans were associated with Curve’s founder, Michael Egorov, and utilized CRV tokens as collateral.