Description of Curve Finance
What Is Curve Finance?
Curve Finance is a decentralized liquidity pool for stablecoin trading. Instead of an order book, it uses an AMM (automated market maker) model to match liquidity. As a decentralized and permissionless protocol, anyone can provide liquidity to one or more of the liquidity pools. The constant product formula of the AMM ensures maximum efficiency while incurring a minimum of slippage for traders.
The Curve pools are smart contracts implementing the StableSwap invariant and enabling the exchange of two or more tokens. Token swaps can be performed between paired stablecoins (Plain Pools) or between wrapped tokens, with the underlying collateral lent out on another protocol (Lending Pools). Finally, Metapools pair stablecoins against LP-tokens from another pool.
The protocol is available multi-chain — on Ethereum, Arbitrum, Aurora, Avalanche, Fantom, Harmony, Optimism, Polygon, xDai and Moonbeam. Users typically have to bridge funds from Ethereum to these chains to use the Curve protocol. Due to its systemic importance for decentralized finance (DeFi), the protocol has attracted several other protocols fighting over its governance in the so-called Curve Wars.
Who Is the Curve Finance Founder?
Curve Finance was founded by Michael Egorov, the former co-founder and CTO of NuCypher, a cryptocurrency infrastructure protocol. He also founded LoanCoin, a decentralized bank and loans network. Before his work in the cryptocurrency industry, Egorov studied at the Moscow Institute of Physics and Technology and the Swinburne University of Technology.
When Did Curve Finance Launch?
Curve Finance was launched in June 2020, amidst the so-called DeFi Summer, and is considered one of the core building blocks of the nascent DeFi sector.
Where Is Curve Finance Located?
According to CBInsights, Curve Finance has its headquarters in Switzerland.
Curve Finance Restricted Countries
At the time of writing, there is no information about possible restricted countries. However, users from countries under US financial sanctions may be subject to geoblocking.
Curve Finance Supported Coins List
The exchange supports liquidity pools for major stablecoins like DAI, USDC, USDT, FRAX and TUSD. It also offers swaps between wrapped tokens like wBTC, wETH and stETH (a derivative of staked Ether native to Lido).
How Much Are Curve Finance Fees?
According to the protocol, the standard fee on all pools is 0.04%. Half of the fee goes to liquidity providers, the other half to veCRV holders. veCRV holders receive enhanced governance rights in return for staking their tokens for fixed periods of time.
Is It Possible To Use Leverage or Margin Trade on Curve Finance?
This exchange offers only token swaps and thus does not have leverage or margin trading.
Hide