Curve Finance makes use of liquidity pools and bonding curves to provide high-efficiency stablecoin trading and low-risk returns for liquidity providers.

With Curve, users aren’t exposed to the price slippage they would normally face on DEXs when trading from one stablecoin to another. Unlike Uniswap, Curve lends assets on Compound when they aren’t being traded and gives that interest to liquidity providers.

Background

Developers began writing code for Curve in September 2019, but the first release was at the end of December. Curve has no native token or coin offering, and they have not made any funding public.

There is no public mention of an official Curve team, however, the majority contributions on Github come from Michael Egorov. Michael is the CTO of NuCypher, a project that acts as a decentralized encryption and privacy layer on top of Ethereum.

Benefits

For users trying to swap stablecoins like Dai and USDC in a decentralized fashion, Curve is able to mitigate slippage. This is done by accommodating for new varieties of bonding curves. On top of being able to make highly efficient swaps, it’s useful for liquidity providers who want to earn a return on top of their interest earned through Compound without having to hold the more volatile assets on the market.

Curve also enables liquidity providers to make use of yTokens instead of Compound’s interest to bring in passive earnings. Instead of interest automatically accruing through Compound’s cTokens, yTokens are able to rebalance the underlying tokens to obtain the highest interest rate among a handful of other tokens while allowing the user to still hold the stablecoin itself.

Getting Started

Curve is available on mainnet today at curve.fi, and supports DAI, USDT, USDC, and TUSD through y.curve.fi. Both trading and depositing require assets to be stored in a web3 wallet like MetaMask.

To trade, simply head to the “Buy and Sell” tab and input the amount of the tokens you want to trade for the designated token pair and click sell.


To provide liquidity, visit the “Deposit” page and enter how much of each supported stablecoin to deposit and click submit.

Get Involved

To follow future developments and learn more about Curve we suggest following their Twitter and joining their Telegram group. If you want to get a more in-depth look into how Curve works, please check out their Github.