Crypto news: Binance invests $5 million in Curve DAO (CRV) to support protocol

Among today’s crypto news is one about Binance Labs’ $5 million investment in Curve DAO (CRV). 

The strategy of the crypto-exchange’s venture capital firm aims to both support DeFi’s Curve protocol and bring the CRV stableswap distribution to the BNB Chain. 

Crypto news: Binance invests $5 million in Curve DAO (CRV) token

Binance Labs, the venture capital arm of Binance, announced that it has invested as much as $5 million in the Curve DAO (CRV) token. 

Basically, with this strategic investment, Binance Labs wants to support the Ethereum-based protocol, also to support the Decentralized Finance (or DeFi) industry in general. 

This is because Curve is the largest stableswap and the second largest decentralized exchange (or DEX) with about $2.4 billion in total locked value (TVL) and $215 million in daily volume at the time of writing. 

On the other hand, Binance’s investment also supports Curve’s idea of considering implementing its token on BNB Chain as well.

Crypto news: Binance to deploy Curve DAO (CRV) on BNB Chain 

Curve DAO Token (CRV) is the utility token in the Curve DeFi protocol used for exchanging stablecoins and other ERC-20 tokens, as well as staking, boosting, and voting for governance purposes. 

Curve currently operates on several chains, offering the advantages of speed and cost. With this investment and new collaboration, Binance has also gained consideration of its BNB Chain as a future CRV implementation. 

In this regard, 

Yi He, co-founder of Binance and head of Binance Labs, commented:

“Curve is the largest stableswap, and as a key protocol in DeFi it has contributed to the steady growth of the space in 2023. Given the recent events that have impacted the protocol, Binance Labs has offered our full support to Curve through our investment and strategic collaboration. We view this cooperation as a starting point and look forward to working together to further propel the growth of the DeFi ecosystem.”

Michael Egorov, founder of Curve also made comments on the matter:

“BNB Chain has earned a significant presence in DeFi, and is well positioned to deploy Curve’s current and future products on its chain. We look forward to collaboratively fostering innovation and growth across the DeFi ecosystem.”

CRV’s price and developments on the recent exploit

Yesterday, the price of CRV experienced a sudden surge, touching $0.6439 from the current $0.6068. 

Nothing to do with the price rise that had occurred on 30 July on the Bithumb crypto-exchange due to exploits. 

Indeed, on the same day, Curve had been drained of $73.5 million from its stable pools due to a reentrancy vulnerability in its underlying programming language, Vyper. 

This led to the CRV/KRW pair seeing a +500% price rise on the South Korean crypto-exchange, which did not happen for the CRV/USD pair on Western crypto-exchanges. 

In any case, on 4 August, the hacker behind the exploit had written via Ethereum that he would give back, as he did not want to ruin the project. And so 73% of the stolen assets (the equivalent of $52.3 million) has been returned. 

Overall, CRV now ranks 71st in the general crypto ranking by market capitalization, with a total market cap of more than $500 million.