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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 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 (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.
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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.