Curve – the third-largest DeFi DEX – revealed the reward allocations for it’s pre-launch period which ended yesterday evening.
The pre-launch period has officially ended at block 1062759
We invite you to check how much $CRV you have received as a pre-launch liquidity provider at this address: https://t.co/lAVfuagHEq
— Charlie – Curve.fi (@charlie_eth) August 9, 2020
In preparation for its upcoming CRV governance token launch, Curve LPs received CRV retroactively based on how long and how much capital had been supplied to the liquidity aggregator. The rewards portal allows anyone to easily check how much CRV they earned – all of which is subject to a one-year lock-up.
While the pre-launch period was originally only supposed to allocate 3% of CRV’s 3.03 total supply, the team decided to bump this up to 5% of the total supply – taking the total share of CRV to be distributed to liquidity providers to 62%.
Here’s a good look at how the pre-launch ended up breaking down.
CRV Launch Details
In the overview blog post, the Curve team released details for the CRV token distribution, broken down as follows:
Total Supply of 3.03b:
- 62% to liquidity providers
- 30% to shareholders with 2-4 years vesting
- 3% to employees with 2 years vesting
- 5% to the community reserve
Circulating Supply of 1.3b:
- 5% to pre-CRV liquidity providers with 1-year vesting
- 30% to shareholders with 2-4 years vesting
- 3% to employees with 2 years vesting
- 5% to the community reserve
The issuance period for CRV is set to unlock over an extremely long period of timing, giving the issuance model a curve that looks like this.
To kickstart the distribution, 2M CRV (or 0.06% of the supply) will be released every day. This comes in tandem with real-time vesting for LPs, team, and shareholders, meaning that LPs will be able to claim 1/365th of their pre-launch rewards every day.
Why CRV?
As illustrated in our CurveDAO article, CRV tokens will be used to govern one of the hottest rising DEX and lending platforms to date. With Curve’s Y pool seeing exponential growth with the launch of YFI, we can assume the platforms existing seven pools are the start of many more to be added in the near future. CRV will also follow a classic liquidity mining framework, making for sure fireworks on secondary exchanges like Uniswap and Balancer come launch.
Outside of stablecoins, Curve recently expanded to BTC pools – offering a way to swap between different Bitcoin wrappers with minimal slippage. As the DeFi ecosystem continues to introduce different token flavors, we can only expect Curve will be the preferred place to swap them.
Beyond the notion of protocol fees being directed to the CurveDAO, governance will be time-weighted, meaning those who participate in the early days will earn extra governance weight and rewards multipliers as the project evolves.
Given Curve’s meteoric rise in the DEX sector, it’s no surprise many are pointing to the CRV launch as one of the biggest DeFi token debuts we’ve seen to date. It’s also worth noting that it’s leading two counterparts, Uniswap and dYdX, do not yet have native governance tokens.
To stay up with Curve and be prepared to farm, be sure to stay up with Curve on Twitter.
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Cooper is the Editor of DeFi Rate and a contributor to leading DeFi outlets like the Defiant and Bankless. He is active in the DAO ecosystem through projects like MetaCartel and Raid Guild where he seeks to incubate governance models and grassroots community development. He is an ambassador of Set Protocol and the Director of Fitzner Blockchain Consulting where he authors a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.
