Binance Labs invests $5M in Curve DAO Token following $60M July hack

Binance Labs said on Aug. 10 that it has invested $5 million in Curve DAO Token (CRV) in an attempt to bolster the DeFi platform following an attack.

Yi He, Co-Founder of Binance and Head of Binance Labs, said:

“Given the recent events that have impacted the protocol, Binance Labs has offered our full support to Curve through our investment and strategic collaboration.”

Though Binance Labs did not specifically name the events mentioned above, its description implicitly refers to a recent attack on Curve Finance. That incident took place on July 30 and resulted in the theft of at least $60 million. Curve Finance regained some of those funds starting on Aug. 5 after it offered a reward bounty to the attacker. As of Aug. 7, the platform had recovered 73% of its stolen funds.

Binance Labs additionally suggested that the collaboration will allow Curve to deploy on the Binance-associated blockchain BNB Chain. Curve currently operates on 12 blockchains, and this arrangement will broader its availability further.

Binance also drew attention to Curve’s strong market position, noting its low fees and slippage as well as its dominance among DeFi platforms. It said that Curve is the largest “stable swap,” referring to Curve’s focus on stablecoin trading.

Curve also ranks highly outside of that niche. According to current data from Defillama, Curve is the seventh largest DeFi platform overall based on its total value locked (TVL). The amount of crypto locked in Curve currently stands at $2.4 billion.

CRV token powers Curve Finance

Binance Labs acknowledged that the Curve token (CRV) has numerous uses, emphasizing that it acts as an incentive for liquidity providers and governance participants. It noted that the token otherwise “powers the Curve ecosystem.”

Binance’s exchange is one of the largest markets for CRV token trading. Its CRV/USDT trading pair accounted for 18% of CRV trading volume on Aug. 10, according to CoinGecko data. Binance also offers a number of other trading pairs featuring the token, which slightly raises its share of CRV’s overall trading volume.

CRV is the 81st largest cryptocurrency and saw daily trading volumes of $102 million at the time of writing. Its value is up 1.6% over 24 hours amidst a largely stable market.

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