Understand the correct posture of Crv: business status, ecological development, moat and valuation comparison of the leading liquidity market. Curve’s core business is: spot trading; liquidity procurement, distribution and management. Spot trading is an encrypted business scenario with the largest number of users and the most frequent exchange of funds. According to DeFillama data, the total monthly trading volume of DEXs in January 2023 accounted for only 7.21% of the total spot trading volume of crypto assets. In the long term, the DEXs track will benefit from: an increase in asset classes and total transaction volume (industry Beta)

Gradual erosion of CEXs trading market share (Track Alpha). The increase in the size of the liquidity market is also driven by two factors: the growth of the total asset class and value scale of the entire crypto world; and the trend of user funds shifting from centralized institutional custody to on-chain self-management.

The fierce competition in the DeFi field where Curve is located is far more than a race for functional innovation and fierce competition for users, but also lies in the existence of a token issuance mechanism. The most important value of the introduction of a token mechanism in Web3 projects is that they can have flexible monetary policy options, rapidly expand their business, and strive to form a "leading network effect" earlier than their competitors, thereby building a competitive barrier for latecomers. Using their own tokens to stimulate the two sides of the business and promote the formation of cross-border network effects as soon as possible is the starting point for many Web3 projects, especially DeFi projects.

The main value of various companion projects in the Curve ecosystem to Curve is as subcontractors of "product function and experience innovation" and direct or indirect maintainers of the CRV lock-up system. These two points are the key factors for Curve to survive in the "infinite war" between DEXs and the liquidity market until the moment of "natural monopoly formation". Curve has a good team performance history, execution and security record. Its main development risks come from increasingly fierce market competition and interest coordination within the ecosystem, and it must guard against the possibility of a negative spiral between currency price and business in a bear market.