In a bold move, Binance Labs, the investment extension of the globally recognized crypto exchange has pledged an investment of $5 million into Curve DAO Token (CRV), the operating token for the Curve decentralized exchange (DEX) running on the Ethereum blockchain.
A closer look reveals a potential deployment hint for Curve on Binance’s BNB Chain. Curve, a notable stableswap and DEX, currently holds approximately $2.4 billion in total value locked (TVL) as per data from DefiLlama. However, the platform’s reputation took quite a hit last month when it fell victim to a massive hack, losing over $70 million in the process.
This aside, Yi He, co-founder of Binance and head of Binance Labs, praised Curve as the leading stableswap and a crucial cog in the DeFi machinery, attributing a significant part of DeFi’s steady-paced growth in 2023 to it. Spurred by their unwavering faith in the platform, despite the challenging times, Binance Labs has offered its full support in addition to the investment. He sees this as a partnership primed for future growth of the DeFi ecosystem.
A crucial aspect of this collaboration is the Curve DAO Token. An essential asset of the Curve DeFi protocol, CRV, is employed to exchange stablecoins and other supported tokens. It also plays a key role in staking and governance matters. The announcement of Binance’s investment infused optimism into investors, nudging the CRV price up by 4.8% to 64 cents before leveling out at 61 cents.
The significance of this investment is twofold. On the one hand, it underlines Binance Labs’ faith in Curve’s potential contribution to DeFi’s future growth. Yet, on the other hand, it further emphasizes the importance of improved security measures in Decentralized Finance given Curve’s recent loss in a significant hack. As the crypto universe expands, decisions like these fuel discussion about striking a balance between advancements and safety, a paradox that continues to underpin the crypto space.
Source: Coindesk
