Today, we’re briefing you on Curvance, an omnichain lending market looking to abstract away a lot of the complications with using DeFi across chains.
The project announced yesterday a $3.6M raise at a $60M valuation, with an impressive list of investors. As Curvance enters its mainnet and the native CVE TGE draws nearer, it may be worth keeping an eye on the project…
Over and out ⬇
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Crypto Market Update:
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News
- SEC Delays Decision on Grayscale's Spot Ether ETF: The Securities and Exchange Commission has postponed its decision on Grayscale's proposed spot Ether ETF until January 25, 2024.
- Bitcoin Perpetual Futures Reach Yearly High on Deribit: The open interest in Bitcoin perpetual futures on Deribit has soared to a yearly peak, indicating increased market participation and potential liquidity.
- Robinhood Reports 75% Surge in November Crypto Trading: Robinhood's crypto trading volumes in November jumped by 75% from October, signaling a potential turnaround in the company's recent crypto revenue decline.
- BlackRock and Bitwise Update Spot Bitcoin ETF Filings: Both BlackRock and Bitwise have amended their S-1 filings for spot bitcoin ETFs with the SEC, suggesting ongoing discussions for approval.
- Ark Invest Sells $1.4 Million in Coinbase Shares, Buys More Robinhood Stock: Ark Invest continues to adjust its portfolio, selling an additional $1.4 million in Coinbase shares while increasing its investment in Robinhood.
Project Updates
Neutron Acquires 25% Stake in Confio to Boost CosmWasm Adoption: Neutron has purchased a 25% stake in Confio, the developer of CosmWasm, to enhance its adoption and bring technological advancements.
- Gearbox Protocol Announces V3 Launch: Gearbox Protocol is set to launch V3, introducing PURE margin trading, new assets, and potential Layer 2 deployments, with a focus on improved organic rates and other opportunities.
- Jito Announces Airdrop Details for $JTO Token: Jito reveals eligibility and allocation specifics for its $JTO token airdrop, targeting JitoSOL users, validators, and MEV searchers.
- Launch of Balancer V3: Balancer introduces V3, a significant upgrade aimed at redefining AMM innovation and fostering a more potent DeFi ecosystem.
- Ankr Introduces Rollup-as-a-Service for zkSync Hyperchains: Ankr has launched a new service allowing developers to create and deploy independent Layer 2 chains for decentralized applications using zkSync Hyperchains.
Background on Curvance
The Curvance team has been working on the project for 19 months, a long time for a pre-launch DeFi dApp.
Rather than deploying a testnet, a V1, and then trying to create an optimized v2, the Curvance team opted to be more strategic and deploy as the bull market began.
Curvance wants to add value by building a novel project that users want to use.
The project aims to make DeFi cheaper, safer, and faster for the average user, by helping them collateralize, leverage, and boost assets across DeFi.
It wants to be a lending market for any EVM asset, including wrapped tokens, staked tokens, LSTs, LP tokens & more.
The use case for Curvance becomes more important as liquidity becomes more and more fragmented with more L1s, rollups, and other chains launching.
Different chains have different ecosystems of projects, which may be a barrier to entry for users unfamiliar with the chain. This is something Curvance aims to mitigate with in-dApp cross-chain zapping.
The project will be available on Arbitrum, Optimism, Polygon zkEVM, and many more chains.
Curvance consolidates steps involved in DeFi into as little actions as possible. The Curvance team is working with key projects to make sure native assets of these projects can be integrated onto the platform easier.
Many dApps want to own everything, rather than use existing infrasturcture. Curvance takes the opposite approach, working directly with teams, many of whom are angel investors in Curvance themselves. The Curvance DAO may end up acquiring assets of these protocols.
Curvance $3.6M Raise
Curvance announced a $3.6M funding round, with investors including Wormhole, Polygon, Mantle, Curve, and Convex, among many others.
The raise places a $60M valuation on the project.
Now, the project is exiting stealth mode.
The project potentially could've secured a lot more funding than they did if they rushed out a product instead of taking a more strategic approach.
The project's pitch deck describes itself as an omnichain yield-optimized money market for any EVM asset.
Curvance’s Expansive Investor list; some investors and angels have not yet been disclosed
$CVE Token
$CVE is the native governance token of Curvance.
The distribution of $CVE is designed to reward power users, rather than airdropping based on previous activity. This could entail trying the testnet and providing feedback, participating in the beta and depositing funds, or being active in the community.
In the recent $3.6M raise, only 6% of the token supply was sold. This contrasts with typical raises, which often include 12-15% of tokens to be sold.
Every investor had a $250k cap, spreading out the token allocation across a wide number of investors.
The role of $CVE in governing the DAO will come into play into the next 2 quarters.
$CVE uses a heavily modified version of ve tokenomics.
There is some excitement around projects building on top of Curvance, so some tokens may be directed towards these iniatives as well.
The expected launch of the protocol is split into 3 stages:
Testnet will use invite codes and be publicly available, potentially by next week.
Beta will be on mainnet, and will ideally will take place in Q1 2024 depending feedback from audits. The Curvance audit may be the largest audit done by Code4rena.
Official Launch will see the protocol go cross-chain. This could happen after a 4-week beta.
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