In a historic move, payment processor PayPal has promoted PYUSD liquidity on Curve Finance, the world’s largest decentralized stablecoin exchange (DEX) by trading volume.
PayPal promotes PYUSD liquidity via Curve
This development, first reported by Stake DAO on January 10, has sent shockwaves through the crypto community, with many experts predicting that Curve is poised to become the preferred platform for institutional and corporate trading of on-chain stablecoins.
PayPal’s decision to promote PYUSD liquidity on Curve is an important step forward for stablecoin adoption and the promotion of decentralized finance (DeFi) protocols in general. By offering attractive rewards to liquidity providers, PayPal signals its commitment to growing this rapidly evolving industry.
As part of its incentive program, PayPal deposited $132,000 worth of voting incentives in PYUSD on Votemarket, a voting incentive platform. These rewards are intended to encourage users to increase their liquidity on Curve. In addition, PayPal offers direct rewards to liquidity providers distributed in PYUSD with an APR of 11%.
Observers note that the $66,000 allocated to Votemarket each week could funnel at least $55,000 in CRV, a governance token on Curve Finance, into the PYUSD-USDC pool.
With PayPal’s approval, Curve could attract even more liquidity and solidify its leading position in on-chain stablecoin trading. It is unclear whether other Wall Street heavyweights on the fringe are willing to improve liquidity via Curve or other DeFi protocols. Your commitment will validate the potential of Curve and DeFi, thereby accelerating adoption by institutional investors.
According to DeFiLlama data as of January 10, Curve has a total value (TVL) of $1.82 billion, much of which is in Ethereum. The protocol has been deployed on Layer 2 of Ethereum and other Ethereum Virtual Machine (EVM) compatible platforms, including Arbitrum.
CRV, Curve’s native token, remains under pressure for now. Looking at the performance on the daily chart, the token is down 30% from recent December highs and is slipping as we write this article.
According to technical price analysis, any break above $0.75 could trigger more demand and take the token to new highs in 2024. Currently, CRV is trading within a bearish candle, indicating overall weakness. In the short term, sharp losses below $0.45 could trigger a sell-off. In this case, CRV is at risk of falling to the September 2023 low, around $0.40.