Binance Labs Commits $5 Million to Invest in Curve DAO Tokens.

As part of the collaboration, Binance Labs and Curve will also explore the possibility of integrating Curve on Binance's blockchain, BNB Chain.

Binance Labs Commits $5 Million to Invest in Curve DAO Tokens.

Binance Labs, the venture capital and incubator division of the cryptocurrency exchange Binance, has agreed to invest $5 million in Curve DAO tokens (CRV), the native token of the Curve decentralized exchange (DEX). The investment is part of a strategic collaboration between Binance Labs and Curve, which aims to support the growth and development of the DeFi ecosystem.

Curve is a stableswap and DEX platform that allows users to trade and provide liquidity for stablecoins and other pegged assets. Curve is one of the largest DeFi protocols, with over $2.4 billion in total value locked (TVL). Curve also supports various L2 scaling solutions, such as Optimism and Arbitrum, to reduce gas fees and increase throughput.

Binance Labs Commits $5 Million to Invest in Curve DAO Tokens.

Curve Finance TVL. Source: DeFiLlama

However, Curve suffered a major setback last month when it was hacked for over $70 million due to a vulnerability in the Vyper programming language. The hacker exploited a flaw in the code of the TriCrypto pool, which handles a mix of USDT, USDC, and WBTC. The hacker managed to drain 2,631 ETH, 462 WBTC, and 5.5 million DAI from the pool. The hacker later returned some of the funds, but not all.

The hack raised concerns about the security and stability of Curve and its token. CRV’s price dropped from $0.74 to $0.55 after the hack, and some liquidity providers withdrew their funds from the platform. The hack also put pressure on Curve’s founder Michael Egorov, who had borrowed CRV tokens from Cream Finance to boost his voting power on the protocol. There were fears that Egorov’s loan positions could be liquidated if CRV’s price fell further.

Binance Labs’ investment in CRV is seen as a vote of confidence in Curve and its recovery. Yi He, the co-founder of Binance and head of Binance Labs, said that Curve is a key protocol in DeFi and that Binance Labs has offered its full support to Curve through its investment and strategic collaboration. He also said that Binance Labs views this cooperation as a starting point and looks forward to working together to propel the DeFi ecosystem’s growth further.

As part of the collaboration, Binance Labs and Curve will also explore the possibility of integrating Curve on Binance’s blockchain, BNB Chain. BNB Chain is a fast, low-cost blockchain that supports smart contracts and interoperability with other chains. BNB Chain hosts many DeFi projects like PancakeSwap, Venus, and BakerySwap. By deploying Curve on BNB Chain, users could benefit from lower fees, faster transactions, and more liquidity.

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