Defi tokens Convex Finance (CVX), Curve DAO Token (CRV) and Lido DAO (LDO) leads recovery

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In today’s article, we are going to briefly talk about the two major decentralized finance (DeFi) tokens that have surged more than 9% in the last 24 hours. But before that, here’s an overview of Bitcoin (BTC). BTC, which is frequently criticized by industry observers for being highly volatile, has gone on an accumulation mode since June 2022. Ranging between $23,000 and $18,000 with few exceptions, BTC has been caught in the crossfire of macro factors like US Fed rate hikes, Credit Suisse’s defaults etc. However, BTC is currently battling to take over a crucial psychological level of $20,000. The UN has warned the Fed that further rate hikes will likely lead to a global economic downturn. Now let’s take a look at Lido DAO (LDO) and Curve DAO Token (CRV) in detail. 

Lido DAO

Lido Finance, the highly-popular liquid staking protocol, is also enjoying a bullish uptick. LDO, the project’s native governance token, is currently up over 7% over the past 24 hours. The LDO token is used to vote on various proposals to improve the project. Liquid staking refers to the process of depositing Ethereum, for example, but getting another token in return that can be used elsewhere in the market (hence the word liquid). 

There have been fewer technical updates for the staking project, but following the Ethereum merge last month, some of Lido’s fundamentals have improved. For instance, Staked Ethereum (stETH), the token that users receive in return for staking ETH on the platform, has moved closer to price parity with Ethereum.

Curve DAO 

Curve DAO (CRV) is the utility token of the Curve.fi DeFi protocol for exchanging stablecoins and other ERC-20 tokens. Curve’s main goal is to connect users who want to exchange ERC-20 tokens and stablecoins with exchange protocols. To achieve this system of exchanging, Curve uses liquidity pools which are backed with liquidity tokens. 

Liquidity pools encourage liquidity providers to deposit their tokens into the pools, to keep the price at satisfactory levels so they can benefit as well. Liquidity providers are rewarded for depositing their tokens into pools.

CRV is the protocol’s utility token and is used to incentivize liquidity providers, while holders can also use CRV to participate in network governance.

Earning CRV and LDO

• • Set up a metamask wallet and deposit some Ethereum (ETH) into it. There are various ways to do it. You can directly purchase ETH from Metamask or transfer from an exchange. 
• • There are a lot of pools available on Curve finance that let users provide liquidity. One of them is an ETH-stETH pool which has a total value locked (TVL) of $1.8 billion. We will look at how to participate in that particular pool. 
• • If you have ETH, then you can go to a decentralized exchange (DEX) like 1inch, connect your metamask wallet and swap ETH for stETH by paying transaction fees (gas fees). 
• • Once stETH is purchased, head on to the pools section of curve.fi website, connect your metamask wallet, find ETH-stETH by searching stETH in the search section and click that row. 
• • Now, go to the deposit section (on top). Enter ETH and stETH amount in 50:50 ratio (standard way to do, it can be different too) you want and click “Deposit & stake in gauge”. You will be asked to sign messages and gas fees (varies according to traffic, better to have $20 ready to spend apart from the staked amount) along the way. 
• • You have successfully provided liquidity to ETH-stETH pool and will start earning LDO and CRV tokens each day which can be found in the dashboard section. 

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.