Curve DAO’s latest rollout triggers price rally in DeFi tokens CRV and CVX
- Curve DAO has rolled out a Tri Crypto token pool, hosting Ethereum, WBTC and USDT with DeFi’s deepest liquidity.
- The latest offering fueled a rally in the DeFi tokens CRV and CVX, yielding over 5% gains overnight for holders.
- DeFi traders can benefit from their Ethereum holding, and provide liquidity in two pools.
Curve, a decentralized exchange, shipped its latest offering, in the form of Tri Crypto token pool, on Tuesday. Curve DAOs pool hosts Ethereum, WBTC and USDT and its launch triggered a rally in CRV and CVX prices.
Through the new liquidity pool, traders can earn double the benefits from their Ether holdings, providing liquidity first to the TriCrypto pool and then deposit the TriCrypto LP token in a different pool.
Also read: AVAX price begins rally after massive spike in activity on Avalanche
How to earn double benefits from Ether in Curve DAOs new pool
Decentralized crypto exchange Curve’s TriCrypto Pool doubles the benefit for Ether holders through its TriCrypto pool. The latest product offering was shipped on April 25 and it hosts three assets- Ethereum (ETH), Wrapped Bitcoin (WBTC) and USD Tether (USDT).
Ethereum holders can provide liquidity in the TriCrypto Pool and use the TriCrypto LP to provide liquidity in another pool, TriCrypto-stETH pool for instance. This doubles the gains for users holding Ether, opening up opportunities to earn higher income from liquidity pools.
5/ @CurveFinance solves this.
— Winter Soldier ❄️♂️ (@WinterSoldierxz) April 26, 2023
One ETH can be used to provide liquidity on not just one pool, but two pools.
How they did it?
First, users deposit ETH into TriCrypto pool & receive TriCrypto LP
Then, deposit TriCrypto LP into another pool, such as the TriCrypto-stETH pool.
The rollout of the pool has triggered a rally in Curve DAO (CRV) and Convex Finance (CVX) tokens. Both assets have yielded upwards of 5% gains for holders since Tuesday, based on data from CoinGecko.
Curve beats Uniswap through its new liquidity pool
Curve’s competitor Uniswap pairs tokens with Ethereum and reduces the volatility associated with price movements, making trade and earning yield easier for users. However, Curve’s latest offering disrupts this and transitions from stableswap and the volatile Automated Market Maker (AMM) market.
1/ @CurveFinance secretly shipped TriCrypto-Token pool on @ethereum mainnet yesterday.
— Winter Soldier ❄️♂️ (@WinterSoldierxz) April 26, 2023
This move is set to take Curve's composability & capital efficiency to the next level.
How will this impact the Curve ecosystem and your $CRV & $CVX bags?
A short pic.twitter.com/K4jv3FGToj
The TriCrypto pool hosts ETH, WBTC and USDT, making it one of DeFi’s deepest liquidity markets to swap between the three assets and pushing users into the volatile AMM market.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
