Curve Finance: A-Z of how stETH pool has fared amid market drawdown
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With current liquidity offered at February levels, new data from on-chain analytics platform IntoTheBlock revealed a continued decline in Curve Finance’s key ecosystem metrics.
Located on the Ethereum network, Curve Finance is a decentralized exchange primarily focused on efficient stablecoin trading.
According to information, from DappRadar, Curve Finance is the fifth DEX with the highest Total Locked Value (TVL). At press time, the protocol’s TVL was $5.09 billion.
After the decentralized finance (DeFi) boom of 2021, thanks to wider financial market woes, countless DeFi hacks and scams, and a general decline in cryptocurrency markets, the year has been marked by a decline in DeFi activity. protocols.
Also affected by the general market decline, data from IntoTheBlock showed that the total liquidity provided by Curve has fallen by 81% since the beginning of the year. It fell from $27.17 billion in January to $4.01 billion, according to the press release.
The head rests restlessly
Curve Finance is a protocol with over 100 different liquidity pools. With $1.4 billion in TVL, the stETH pool is the largest. As a result, the pool has been most affected by the general decline suffered by DEX.
At press time, the total liquidity provided by the pool was $1.41 billion. Looking at the beginning of the year, this has decreased by 67% since the beginning of the year. As of January 1, liquidity provided by this pool was $4.32 billion.
In addition to the freefall of total liquidity provided by Curve Finance’s stETH pool, the annual percentage rate (APY) paid as a reward to users participating in the pool has dropped significantly since June 15th.
At the beginning of the year, the contribution APY was tied at 0.03 percent. It rose to 0.68 percent by June 15, before collapsing.
In addition, Curve Finance’s stETH pool liquidity utilization rate has steadily declined over the past six months. The pool’s liquidity utilization is the ratio of the pool’s trading volume to its total liquidity.
On June 13, stETH’s liquidity usage rate rose to as much as 1.82%. At 0.03% at press time, it has since fallen 98% over the past six months.
According to CoinMarketCap, Curve DAO Token (CRV), the DEX’s original token, was trading at $0.895 at press time. During the last month, the price of the property has decreased by 17%.