In the world of cryptocurrency, every move is closely watched. This scrutiny is even more active for a protocol like Curve. This year’s production cuts mark a turning point for Curve. With the end of the founder team’s lock-up period, inflation is much lower than before. Interestingly, despite the reduction in incentives, there hasn’t been a significant drop in business volume. Now, the protocol generates income from post-production cuts that exceed the unlocked amounts, signaling a transition to positive cash flow for Curve.
Pools and Power Balance in the Crypto Ecosystem
Researcher 0xLoki addressed the topic on their X page. According to 0xLoki, the pools ranked second, fourth, and eighth in transaction volume on Curve are filled with USDe.
The twelfth, eighteenth, and nineteenth pools host Ethereum‘s LST/LRD assets. According to 0xLoki, the size and transaction volume of these pools demonstrate how powerful a player Curve is in the crypto ecosystem. In the future, assets in the BTC ecosystem are expected to contribute to Curve’s revenues.
Curve’s Revenue Growth
Curve generates much more profit through liquidity layers than Uniswap. The income from three major asset liquidity layers puts Curve ahead of its competitors. Curve doesn’t stop there; Lending (Crvusd) brings in more revenue than Swap. This shows that Curve is not just an exchange but also a significant player in the lending field. As new balances are established in the crypto markets every day, Curve continues to turn this balance in its favor.
Curve seems poised to strengthen its position in the crypto world thanks to production cuts and revenue growth. The expectation of a transition to positive cash flow gives hope for the protocol’s future.
Curve, which earns higher revenues compared to its competitors, seems likely to continue making a name for itself in the crypto ecosystem in the coming period. The fact that Curve has recovered despite experiencing a significant hack last year is another noteworthy development.