Binance backs ailing Curve Finance: All you need to know
- As part of the strategic agreement, Curve has agreed to expand to the BNB Chain.
- CRV whale transactions have dipped significantly since the hacking event, indicating a possible recovery.
Investments to the tune of $5 million were pumped into the troubled Curve Finance [CRV] token by Binance Labs, the venture capital arm of crypto behemoth Binance [BNB]. Head of Binance Labs Yi He said,
“Given the recent events that have impacted the protocol, Binance Labs has offered our full support to Curve through our investment and strategic collaboration.”
Is your portfolio green? Check out the CRV Profit Calculator
CRV acts as the utility token for popular stablecoin trading platform Curve Finance, which had assets worth $2.86 billion at the time of writing, per DeFiLlama.
As part of the strategic agreement, Curve agreed to expand to the BNB Chain. Michael Egorov, founder and CEO of Curve Finance, who has been in the eye of the storm of late, expressed hope for the collaboration and said,
“BNB Chain has earned a significant presence in DeFi, and is well positioned to deploy Curve’s current and future products on its chain.”
CRV jumped 5% to $0.64 following the news of the investment on 10 August. However, the DeFi coin quickly fell in value, resting at $0.60 at the time of writing, data from CoinMarketCap showed.
The dangerous ‘Curve’
The decentralized exchange has hogged mostly negative headlines after malicious players extracted assets worth $73.5 million from its various stablepools. CRV’s price collapsed 31% as nervous traders started to dump their holdings.
The hack sparked off liquidation concerns over CEO’s Egorov loans worth more than $100 million, all of which were secured using CRV tokens as collateral on prominent lending protocols.
However, the concerns were alleviated to an extent after the exploiter returned nearly 73% of the funds. To recover the remaining amount, Curve Finance offered a bounty of $1.85 million to anyone who could reveal information about the hacker.
CRV holders shouldn’t lose hope
While an eerie amount of uncertainty gripped the Curve ecosystem, there were early signs that things might change for the better.
How much are 1,10,100 CRVs worth today?
On-chain analysis firm Santiment highlighted that addresses holding between 10K to 100 million CRV tokens have upped their accumulation game. As of 10 August, the cohort controlled 41% of the circulating supply, a significant increase compared to 33% around the time of the exploit.
Furthermore, the whale transaction count cooled off considerably since the intense selling wave in the last week of July. Santiment stated that a further spike in transaction activity could be an indicator of a quick recovery.