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Binance Labs has committed to invest $5 million in the Curve DAO Token (CRV). It is the same token that is a factor behind the Curve decentralized exchange (DEX) on the Ethereum blockchain. Exploring potential deployment on Binance’s BNB chain is also a part of this collaboration for Curve, as was stated in the announcement blog post.
The Hacking and the Loss
According to the DefiLlama data. DEX has about $2.4 billion in total value locked (TVL), while Curve is a stable swap. Last month, a bit of DeFi luster rubbed off, because of the hacking of Curve, amounting to more than $70 million.
Binance Labs Backing Curve DAO Token with $5 Million Investment Is Just Beginning. Yi He, co-founder of Binance and head of Binance Labs which is the venture capital arm of the world’s largest crypto exchange by trading volume, said that Curve has contributed to the steady growth of the space in 2023 as a key protocol in DeFi.
Stating the facts straight, he said that the impact of recent events on the protocol is known and his firm Binance Labs has offered its full support to Curve through their investments and collaboration strategy. However, this is just the starting point and they are looking forward to working together and contributing to the growth of the DeFi ecosystem in the future as well.
The Curve DAO Token is used to exchange stablecoins and other supported coins and that makes it a utility coin of the Curve DeFi protocol. It can also be used for staking and governance purposes. After the Binance investment news came out, CRV rose 4.8% to 64 cents and later settled down at 61 cents.