Curve Finance is a specialized swap exchange for stable-coins, with very low slippage.
✅ Active community
✅ Active team
✅ Billions $$ of liquidity
✅ Decentralized, DAO
Why Use Curve? 🤔
- Swap between stable coins (i.e DAI, USDT, USDC...)
- Very efficient swaps, get the most value while transferring b/w stable coins.
- Curve specializes in stable coin swaps, this focus brings efficient trades.
- Anyone can provide stable coins to curve pools, and earn % from swap fees.
- Pool providers also earn $CRV tokens.
Why Decentralized Exchanges? 🤔
- Coinbase is a company. Coinbase needs to make money. They charge % of sales / buys.
- Uniswap is owned by the people.
- Selling $30k worth of ETH on Coinbase will cost you $500.
- Selling $30k of ETH for USDC on Uniswap costs $10-$50 (depending on gas)
- Swap any amount for only the price of the gas fee.
How Does It Work?
- Every pair (ex : ETH / USDC) has a community pool.
- Anybody can provide ETH & USDC into the ETH/USDC pool.
- This gives liquidity to the people and allows swaps between the pair.
- Those that provide liquidity to any pool, get rewarded swap fees every swap.
Revenue Share For Token Holders:
$CRV stakers receive revenue share 50% of swap fees collected by Curve.
$CRV stakers also receive a 'boosted' earnings on the pools they provide to. See here.
Staking CRV & Earning
- Buy $CRV tokens.
- Head to the Curve Locker
- Choose how long to "lock" tokens.
- Pay the gas and stake!
- You will get veCRV tokens that represent your locked $CRV. Now you can vote on Curve matters in the DAO governance with these veCRV tokens, and they will be worth more and more as time goes on.
Staking CRV & 'Boosting'
- Provide liquidity to a curve pool.
- Lock $CRV in Curve Locker
- Longer you lock, the more you boost your CRV rewards for providing liquidity.
What Is The CRV Token Used For?
- Voting power in the Curve DAO. (must be locked)
- Locking $CRV tokens boost your earnings as a liquidity provider on Curve. This incentivizes people buying / holding the $CRV token and give it utility.
- Low slippage, meaning less likely to not execute your trade at your desired price(s).
- Curve focuses on stable coin exchange pools, so it is most efficient to swap between stable coins on curve, because slippage is low.
What Are The Risks Of Using Curve?
- Bugs, exploits are always possible.
- As a swapper, not much risks at all. (except for slippage)
- As a liquidity provider, impermanent loss is always at play (non stable coins).