According to the announcement made on June 20, 2023, Reserve, a stablecoin protocol, will invest about $20 million into Curve (CRV), Convex (CVX) and Stake DAO (SDT), which are governance tokens of yield farming apps, stated Cointelegraph. It is expected that the investment was made to increase the liquidity of RTokens, a stablecoin of Reserve. It will also increase Reserve’s voting power within these apps’ governance systems.
Sources revealed that the Reserve team mentioned that the new $20 million investment might allow the use of new features for RTokens, including “collateralised loans, wallet products, tokenising real-world assets, and more transparent fintech systems,” Cointelegraph added.
It is expected that the holders of CRV tokens accepted the $20 million investment as CRV saw a decreasing rate on June 15, 2023. Furthermore, the fall in the rate of CRV tokens can be connected to the controversy related to the Aave loans allegedly taken out by Curve’s founder, Cointelegraph concluded.
(With insights from Cointelegraph)
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