Curve DAO Token (CRV) rallies after Terra launches the “4pool” liquidity pool on Curve

Curve DAO Token (CRV) has been in the limelight today and it is on today’s list of top gainers among the top 100 cryptocurrencies.

At the time of writing, CRV was trading at $2.38, up 10.38% after hitting a daily high of $2.47.

The main reason for the current CRV price surge is Tether’s “4Pool” liquidity pool launch on Curve. Curve Finance has already activated the ‘4Pool”, which includes Tether (USDT), TerraUSD (UST) Frax, and USD coin.

There is anticipation that the new pool will attract more capital to Curve.

How the new “4Pool” liquidity pool works

The “4Pool” liquidity pool combines the liquidity of four stablecoins: Tether (USDT), TerraUSD (UST) Frax, and USD coin. It offers returns on deposits just like a decentralized savings account.

Before the launch, Curve Finance had a 3pool simulation with the fee reduced to 1 bps which it said was necessary for the stablecoin market. Even though the 3pool earnings might decrease, the total DAO earnings will increase because of the metapools efficiency. There is an estimation of more than $16.75 billion CRV locked in the Ethereum network.