DEFIMARKETAPPLICATION

Curve pays administrative fee, decisively distancing itself from the cloned protocol Swerve.

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Curve pays administrative fee, decisively distancing itself from the cloned protocol Swerve.

Non-participants may not be able to fully grasp this article. In essence, the story is that the Council of Agriculture originally stipulated that farmers who participated in the committee's voting meetings could receive more agricultural products, aiming to encourage active participation in managing the agricultural association. However, the newly added regulation allows those who participate in the committee's voting meetings to also receive a share of the transaction fees from trading various fruits in the agricultural association. (Irresponsible analogy)

The decentralized stablecoin exchange platform Curve has started distributing governance administrative fees Admin Fee today, splitting half of the original transaction fee of 0.04% among governance participants. Currently, Curve has a locked asset value of $1.57 billion, with a trading volume of $572 million in the last 24 hours before the deadline, reaching a historical high in trading volume. In contrast, the clone protocol Swerve lags far behind, with only $114 million in locked asset value.

Governance Administration Fee

The proposal for the Governance Administration Fee was finalized on August 31st, with the main goal of increasing governance participation. CRV holders can lock their CRV to obtain governance voting rights veCRV on the DAO decentralized autonomous organization page. As of the deadline, locked CRV accounts for 12.44% of the circulating supply, with an average lockup period of 3.28 years. Prior to the implementation of the Governance Administration Fee, the incentive to lock was to accelerate the CRV output efficiency for liquidity providers, up to 2.5 times.

Option to lock CRV into DAO for veCRV

The implementation of the Governance Administration Fee provides a more direct profit-sharing mechanism for governance participants. Based on the current 24-hour trading volume of $5.72 billion, a 0.04% fee would amount to $22.88 million, of which $11.88 million would be distributed to veCRV holders. (Note: The above is an estimate and actual distribution may vary.)

Currently, Curve has started collecting the Governance Administration Fee, but discussions on how to distribute it to veCRV holders are ongoing. As of the deadline, CRV has surged by over 18%.

Copycat Protocol Swerve Fails

In just over a week, including other copycat protocols like SushiSwap, quickly succumbed to the original Uniswap. On September 10th, it was reported that Swerve had caught up to 50% of Curve's locked value, with over $5.5 billion. Currently, Swerve now only has $1.14 billion in locked value, with a 24-hour trading volume of $91.16 million.