Curve Finance’s Michael Egorov proposes transaction fee of core crvUSD pools be doubled for higher CRV income


  • Curve Finance CEO, Michael Egorov, initiated a governance proposal suggesting transaction fee rate of crvUSD pools be doubled from 0.01% to 0.02%. 
  • If transaction volume remains same, Curve is likely to generate higher income, while protecting it from price oracle manipulation.
  • CRV price is in a consistent decline, yielding 10.35% losses for holders over the past week.

Curve Finance, a decentralized exchange platform, suffered an exploit on July 31. Hackers took off with over $50 million in crypto assets and this negatively influenced CRV token price. The asset’s price has been in a consistent decline since the event.

Michael Egorov, the founder and CEO of the project, recommended that the transaction fee of core liquidity pools (crvUSD) be doubled from 0.01% to 0.02%. Egorov initiated a governance proposal for the same. 

Governance proposal by Michael Egorov

Governance proposal by Michael Egorov

The proposal serves two purposes:

  • First, it increases Curve’s income if transaction volume remains the same 
  • Second, it makes it expensive and difficult for exploiters to engage in price oracle manipulation

Also read: Celsius bankruptcy judge denies classification of CEL as a security, rejects precedent set in Ripple XRP case

Reasons why doubling transaction fees of crvUSD pools 

Higher revenue generation is likely to benefit Curve and its community of holders. This could act as a bullish catalyst and push CRV price towards its recovery, after months of decline. Moreover, price oracle manipulation recently resulted in a $6.4 million exploit on Magnet Finance, a project based on Coinbase’s newly launched BASE chain. 

Protecting the project from price oracle manipulation is therefore beneficial to CRV token holders in the long term.

At the time of writing, CRV price is $0.4515, after yielding 10.29% losses for holders over the past week and 38.24% in the past month.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Week Ahead: Crypto’s doom or a new all-time high in the making? Premium

Week Ahead: Crypto’s doom or a new all-time high in the making?

Bitcoin price shows no signs of a directional bias as it hovers around $66,000. The 2019 BTC price fractal hints at a potential correction should the US Fed cut interest rates.

More Bitcoin News

Binance faces backlash following announcement to delist FET

Binance faces backlash following announcement to delist FET

Binance released an announcement stating it will delist FET, stirring FUD among holders. FET experienced a heavy price drop following the announcement, with crypto community members criticizing Binance. FET is down 8% following the announcement.

More Binance News

Ethereum resumes downtrend as Canada sees another staked ETH ETF launch

Ethereum resumes downtrend as Canada sees another staked ETH ETF launch

Canada-based Purpose Investments announces conversion of its Ethereum Capital Corporation into staked Ethereum ETF. Conversion sees Canada embracing Ethereum staking ahead of US after SEC signals discomfort with concept.

More Ethereum News

Crypto ETFs experience heavy outflows after FOMC meeting

Crypto ETFs experience heavy outflows after FOMC meeting

CoinShares' weekly report reveals crypto ETFs experienced heavy outflows of over $600 million. US Bitcoin ETFs experienced the highest decline with $565 million in outflows. Bitcoin, Ethereum and Solana start week in decline.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP