Curve Finance is the most important and overlooked protocol in DeFi. It& #39;s not easy to understand. Many users of lending platforms or DEX aggregators indirectly use @CurveFinance without even realizing.

What do $CRV valuations looks like? How about vs. $UNI and $SUSHI? https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇🏻" title="Rückhand Zeigefinger nach unten (heller Hautton)" aria-label="Emoji: Rückhand Zeigefinger nach unten (heller Hautton)">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇🏻" title="Rückhand Zeigefinger nach unten (heller Hautton)" aria-label="Emoji: Rückhand Zeigefinger nach unten (heller Hautton)">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇🏻" title="Rückhand Zeigefinger nach unten (heller Hautton)" aria-label="Emoji: Rückhand Zeigefinger nach unten (heller Hautton)">
1/ https://twitter.com/AndreCronjeTech/status/1297104678421962754">https://twitter.com/AndreCron...

How is Curve different from other AMMs? @Uniswap and @SushiSwap enable token swaps, but Curve enables low slippage trades between price-stable assets in the same pool.

This helps arb traders and stablecoins maintain their correct peg.
2/

Curve has 35 different liquidity pools, each offering different returns to liquidity providers. When LPs deposit their tokens, they can receive & #39;dividends& #39; as Curve charges traders 0.04% for each swap.

Take a look at our model for their fee generation
3/
https://messari.io/article/valuation-of-curve-finance-the-most-overlooked-protocol">https://messari.io/article/v...

One of the headwinds to $CRV& #39;s price action is its high circulating supply inflation.
4/12

So growth needs to compensate for this. Growth has been erratic and trending about +30% compounded monthly.

In the model, we quickly bring the forecasted monthly compounding growth rate from 30% to 2%.
5/12

We look at global traditional finance and crypto-native companies as a set of comparables for CRV.

@CurveFinance is not only comparable to exchanges, but also to brokerage and banks
6/12

We value CRV using Price to Sales (P/S) multiples, P/S-to-Growth and Dividend Yield comparables. In our valuation, we apply bull, base, and bear cases to get a range of valuations.

You can edit the model to your own assumptions
7/12
https://messari.io/article/valuation-of-curve-finance-the-most-overlooked-protocol">https://messari.io/article/v...

How does $CRV compare to its DeFi peers though?

The chart below shows that CRV is trading at the highest P/S ratio but within the range of $UNI and $SUSHI for dividend yields:
8/12

Why might $CRV trade at a premium to DeFi peers? It has one of the most loyal community, strongest network effects and high transparency with good availability to data.

$CRV holders also benefit from air drops like STAX and Ellipsis
9/12

What are the risks to valuations?
$CRV has high inflation and competition from @Uniswap V3. Voting seems to also be controlled by the team and @iearnfinance.
10/12

Curve is a fundamental building block in the DeFi ecosystem. While it doesn’t receive much recognition, it powers many of the largest platforms with liquidity on the back-end.

CRV has strong potential due to increased attention to the importance of stablecoins.
11/12

Read an indepth overview here and edit the model to your assumptions
12/12 https://messari.io/article/valuation-of-curve-finance-the-most-overlooked-protocol">https://messari.io/article/v...