Curve DAO(CRV)

Overview

Curve DAO (CRV) is the governance token of Curve Finance, a decentralised exchange built on the automated market maker (AMM) model. Like Uniswap, it facilitates on-chain token swaps, but its main focus is exchanging assets that are designed to hold the same value. This is useful in the DeFi ecosystem, where many wrapped and synthetic tokens aim to mimic the price of an underlying asset.

One of its largest pools is 3CRV, a stablecoin pool made up of DAI, USDT and USDC, whose ratios shift with market supply and demand. Depositing a coin that is underweighted yields a larger share of the pool, and heavily skewed ratios can create arbitrage opportunities. Curve also supports yield-bearing tokens: in the yUSD pools created with Yearn Finance (yDAI, yUSDT, yUSDC and yTUSD), liquidity providers can earn from the underlying tokens' yield, the pool's swap fees, and CRV farming rewards.