It is necessary to restore at all costs theimage of DeFi tarnished by series of hacks occurred lately. The attack that caused the $70 million loss at Curve Finance nevertheless woke up the actors. Binance does not want to stand idly by in the face of this tragedy. Reason why the cryptocurrency giant decided tolend its support to this ailing protocol.
Binance reaches out to Curve
Prevent Curve Finance from sinking foreverit was a mission that had been given Friends of DeFi. When boss Michael Egorov needed USDT, Justin Sun, Llanero, Wintermute, xDai and the like didn’t hesitate to get their hands dirty. Whatever they didacquisition of CRV tokens at lower pricesat $0.4 a piece.
Objective : maintain the strength of Egorov’s loan position on FraxLend, Inverse Finance and Aave.
So Binance, which once backed Curve Finance after another hack in 2022, couldn’t help but pull this DeFi protocol out of the mud.
” We have invested in the Curve Finance CRV token with our full commitment to collaborate with the protocol and together shape thefuture of the DeFi sector. »
In his blogBinance revealed that its venture capital and incubation arm, Binance Labs, injected $5 million into the CRV token.
” This investment underscores Binance Labs’ commitment to collaborating with Curve and shaping the future of the DeFi sector “says the team.
Why save Curve Finance?
In the eyes of Binance and crypto-enthusiasts, Curve is not a simple decentralized exchange (DEX). The statistics also give him the following qualifications:
- THE biggest stableswap ;
- THE second largest DEX of the entire ecosystem;
- a blocked total value (TVL) of $2.4 billion ;
- a daily volume of $215 million;
- etc
Comments from Yi He, Co-Founder of Binance and Director of Binance Labs:
“ 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 recent events affecting the protocol, Binance Labs has offered its full support to Curve through our investment and our strategic collaboration. We view this cooperation as a starting point and look forward to working together to continue propelling the growth of the DeFi ecosystem. »
A possible marriage with BNB Chain
The contribution of a substantial sum by Binance was coupled by another initiative validated by the two protagonists. It concerns a project to deploy Curve Finance on the BNB Chain in the near future.
Finally, we will note that Curve is the main Automated Market Maker (AMM) in DeFi at the moment. It has around 100 liquidity pools, some of which were subject to a reentry attack on July 30.
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