In 2024, Curve Finance decided to lower the inflation rate on the fourth anniversary of the $CRV token. As of August 13, the platform lowered $CRV’s annual inflation rate from 20% to 6%, based on Bitcoin’s ($BTC) halving model. This reduction, together with the end of all vesting schedules, means that liquidity providers will only use future $CRV issuances.
The inflation adjustment reflects the movement from high emission levels to a more reasonable level. With a 16% annual reduction, $CRV’s emissions will be halved every four years, which will help maintain the long-term stability of the tokens’ value and also encourage more participation from the DeFi community. This marks the end of an inflationary period and opens a new chapter in $CRV’s growth.
Growth in user engagement and ecosystem expansion
As for Curve Finance, the number of unique users has doubled from 30,000 in 2023 to 60,000 in 2024, representing an annual growth of 105%. This growth can be attributed to the higher usage of the solutions and improved market presence. However, the platform’s total value locked (TVL) was relatively high at $2.4 billion, with liquidity pools still accounting for the majority of volume.
The platform also introduced LlamaLend in March, which offers an innovative lending mechanism with liquidation protection. This feature is used by users who want to borrow money with low risk and high returns, boosting the use and revenue of crvUSD in the ecosystem. By the end of the year, LlamaLend added multiple chains such as Arbitrum and Optimism, reflecting the protocol’s versatility and increasing adoption.
Launch of Savings crvUSD and strategic integrations
October saw the launch of Savings crvUSD (scrvUSD), a yield-bearing stablecoin designed to scale Curve’s stablecoin ecosystem. In its first month, scrvUSD attracted over $20 million in deposits and increased its market cap by 30% to $78 million. The Savings Vault system transfers 50% of profits back to scrvUSD holders, increasing its versatility and value.
The integration of Pendle and Spectra has further diversified the yield prospects for scrvUSD across DeFi products. The token is also included in debit and credit card products that facilitate easy spending in the real world, connecting DeFi to traditional finance.
Looking ahead to 2025
New features include the use of Curve LP tokens as collateral for the crvUSD and the introduction of Forex pools for decentralized trading in the foreign exchange market. All of this, along with more UI/UX improvements, aims to strengthen Curve’s market presence as one of the top contenders in the decentralized finance (DeFi) space.
