Curve Finance is a decentralized autonomous organization (DAO) changing the game in decentralized finance (DeFi) stablecoin trading on Ethereum. You can invest in Curve DAO Token in your retirement account.
One of the benefits of investing in cryptocurrency is the wide diversity of use cases behind the creation of each crypto asset. Unlike Dollars or Euros, no two coins or tokens are alike, nor do they have the same governance rules.
The Curve DAO Token is a fitting example of a token with its own unique governance. Understanding Curve DAO Token will help you decide if you’d like to consider this crypto investment for your Bitcoin IRA. Savvy investors with knowledge of the specific tokens they select can make better choices diversifying and trading.
Michael Egorov developed the Curve DAO Token (CRV) as a governance token for the Curve Finance decentralized exchange (DEX) in 2020. DEX traders strongly supported the development of Curve, as the protocol provides deep liquidity and reduces slippage and fees when making stablecoin trades.
In addition, the Curve decentralized autonomous organization (DAO) allows CRV holders to vote on protocol changes and other rules. For example, the Curve community has voted to lower fees and upgrade the protocol code.
Investors like CRV for its staking and voting abilities — once you buy CRV, you can lock your coins in a liquidity pool of your choice and yield significant annual returns. To facilitate trades, Curve uses “automated market making” (AMM) algorithms that are constantly adjusted with changes in the market.
Curve runs on the Ethereum network and is used to provide liquidity in ETH and Bitcoin-based stablecoin pools. Curve DAO can be a great way to get involved in low-risk staking and liquidity providing, mainly because the development group is preparing for the future in the ever-changing landscape of cryptocurrencies.
Liquidity – Curve was created to provide liquidity and reduce trading slippage and fees for stablecoin (cryptocurrencies pegged to national fiat currencies) trading.
Annual Percentage Rate (APR) – The protocol provides investors with payment for locking their coins in liquidity pools for an agreed-upon amount of time. Unlike many other decentralized exchanges (DEX), users can choose the pools to which they pledge their crypto.
Flexibility – The Curve DAO project was intentionally designed to be monitored and changed to remain current with new developments in the stablecoin space.
Low Fees – The Curve DAO DEX keeps fees low by swapping stablecoins in one trade. This makes it a preferred method of exchange; while other DEXs’ AMMs focus on getting the lowest price regardless of gas fees, causing traders to incur higher fees than necessary, the Curve AMM prevents this.
Earned Tokens – CRV tokens cannot be traditionally mined. Instead, they are earned through the interest collected providing liquidity or staking the tokens.
Locked Liquidity – The protocol has become extremely popular, with more than $10 billion in locked liquidity to date.
CRV is sometimes referred to as the Uniswap (UNI) of stablecoins, and they are neck-and-neck when it comes to total value locked (TVL) . Both tokens serve similar functions in that they reward liquidity provided to cryptocurrency pools; investors can lock their coins to generate interest paid to them as liquidity providers.
Both protocols use AMM algorithms, and there is freedom of choice regarding which pools to enter with each coin. The major difference is that Curve is a DAO, meaning token holders are also decision makers for the business. All changes to the protocol are approved by CRV holders, similar to owning shares in a company. UNI does not provide this feature, which means less user influence but stronger immutability, making it a favorite of decentralization fans.
A Crypto IRA is a self-directed IRA. You can open a Roth or Traditional self-directed IRA. With a Roth IRA, investors use post-tax1 dollars to make contributions into the IRA account, and thus do not pay when taking a distribution at retirement age. With a Traditional self-directed IRA, investors use pre-tax dollars for contributions and pay tax upon distribution at retirement age.
These differences aside, investors have an opportunity for tax advantages by purchasing crypto within an IRA account. It’s important to note as well that distributions from an IRA made prior to retirement age may have taxable penalties. This is true for all investment types held in IRA accounts.
CRV can be seen as a promising investment, as stablecoins are here to stay due to their significant utility. Curve DAO may be uniquely positioned, for example, to help facilitate trading and exchange when governments begin bringing central bank digital currencies (CBDCs) online.
Bitcoin IRA also offers more than 60 different cryptocurrencies, allowing you to diversify your holdings as you fund your account. In addition, Bitcoin IRA provides investors with educational materials about crypto, and is continuously searching for new opportunities to add digital assets to its selection.
Visit Bitcoin IRA or download the app. Click “Open Account,” and fill out the required information. You will be asked if you want to roll over an existing IRA, or contribute fresh funds. After the account is funded, you can start trading CRV.
1Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.