“Is Binance investing because it is confident in this crypto?”
Binance Labs, the venture capital arm of cryptocurrency exchange Binance has invested $5 million in Curve (CRV), a digital asset founded by the decentralized stablecoin trading platform Curve Finance.
According to Binance Labs yesterday, Curve Finance is the largest stableswap* and the second largest for a decentralized exchange (DEX), where its total value locked (TVL) has $2.4 billion while the daily volume is $215 million.
*Automated market maker (AMM) that focuses on stablecoin exchanges with minimal slippage and more efficient trading for liquidity providers
The string, Yi He, co-founder of Binance and head of Binane Labs said that they will fully support the DEX despite the recent exploitation issue that has affected Curve Finance.
But in exchange for the following investment, Curve Finance needs to use BNB Smart Chain, which is a protocol operating on multiple chains that was originally based on Ethereum (ETH) and functions as a DeFi developer with several hundred pools used.
Curve Finance on July 30, 2023 has suffered a loss of $73.5 million from the stable pool** following the re-entry weakness in the programming language.
**Pools that hold assets at the same price
Then on August 4, 2023, the hacker behind the following exploit sent a message to the Alchemix and Curve teams saying that they returned the funds not out of fear of being caught but because they didn't want to damage the project.
After the message, 75% or around $52.3 million of the stolen digital assets were returned to Curve Finance by the hackers but because the full amount was not returned, the platform is offering a $1.85 million reward to anyone who identifies the attackers.
After surpassing $0.70 on August 5, 2023, the price of CRV has steadily declined to reach $0.60 in the last 24 hours.
