PayPal’s recent move to incentivize PYUSD liquidity on Curve Finance has caused a stir in the crypto community. Stake DAO first reported on this development, which many experts believe will position Curve as the leading platform for institutional and corporate trading of on-chain stablecoins. This is a significant step towards the adoption of stablecoins and the promotion of decentralized finance (DeFi) protocols.
To encourage liquidity providers, PayPal has deposited vote incentives worth $132k in PYUSD on Votemarket, along with direct rewards in PYUSD with an APY of 11%. Observers speculate that this incentive program could direct at least $55k in CRV, the governance token on Curve Finance, to the PYUSD-USDC pool each week.
PayPal’s endorsement of Curve could attract more liquidity and solidify its position in the on-chain stablecoin trading market. If other Wall Street players follow suit, it will further validate Curve and DeFi’s potential, leading to increased adoption by institutional investors.
As of January 10th, Curve has a total value locked (TVL) of $1.82 billion, with a significant portion in Ethereum. The protocol has also expanded to Ethereum layer-2s and other compatible platforms like Arbitrum.
Currently, the native token of Curve, CRV, is facing pressure as its price has declined by 30% from its recent December highs. However, if CRV breaks above $0.75, it could generate more demand and propel the token to new highs. On the other hand, a drop below $0.45 may trigger a sell-off, potentially causing CRV to reach lows of around $0.40.