In an impressive show of support for Curve and decentralized finance (DeFi), Binance Labs, the investment wing of renowned crypto exchange Binance, has pledged a generous $5 million investment in Curve DAO Token (CRV). This partnership will also witness Curve extending its backing to BNB Chain, a decentralized applications-oriented blockchain initiated by Binance which uses BNB to foot gas bills. This protocol has found its footing on a host of layer 1 and 2 blockchains, including Ethereum, Polygon, and others.
This strategic alliance, according to Binance, emphasizes their commitment to shaping the DeFi sector alongside Curve. Curve has cemented its position as the leading automated market maker for stablecoins (commonly referenced as “stableswaps”), and it also holds the second spot in the list of the largest decentralized exchanges (DEX), next in line to Uniswap.
However, while the future of this partnership does look bright, it is important to recall that Curve has had its share of challenges. A severe setback came last month when a hacker made away with a staggering $70 million via various liquidity pools linked to the program. Following this incident, the price of CRV took a major hit, dropping from $0.73 to a low of $0.50.
In response to this drop, well-established investors including Justin Sun, stepped in to prevent a free fall of the token’s price. They purchased CRV tokens from the Curve founder at a significantly discounted rate, which shielded the token from hitting a potentially disastrous low.
Meanwhile, BNB Chain too has had its touch of turmoil after the Security and Exchange Commission (SEC) alleged that its token was an unregistered security. Despite this, Binance has held its head high and remains committed to fueling innovation and growth within the DeFi ecosystem, and hopes the new alliance with Curve will help solidify their reputation as a pioneer in this arena. Interestingly, the sentiments from Curve and Binance may offer some relief to both parties, yet the shadows of the past still loom.
Source: Cryptonews
