by Curve
Quick Fact
Curve Finance features over 33 liquidity pools, supports permissionless liquidity pool deployment, and has introduced its own over-collateralized USD stablecoin, crvUSD.
Curve Finance is a pioneering decentralised exchange optimised for stablecoin trading and low slippage, designed to offer efficient and cost-effective transactions. With its innovative approach, Curve Finance has become a leading platform in the DeFi ecosystem, providing users with a seamless trading experience and attractive rewards.
Curve's automated market maker system is designed to optimize trading between similarly behaving assets, such as stablecoins or wrapped tokens like wBTC and renBTC. This model allows Curve to minimize impermanent loss and volatility, providing a more stable environment for liquidity providers.
Curve's focus on stable assets, including tokenized versions of traditional cryptocurrencies like BTC, enables users to avoid the speculative risks often associated with DeFi. Liquidity pools in Curve automatically balance to ensure optimal ratios between assets, leading to consistent returns for liquidity providers and minimal slippage for users.
One of Curve’s standout features is its composability with other DeFi protocols. By allowing assets like cDAI from Compound to be used within its pools, Curve enhances the utility of these tokens and enables liquidity providers to earn multiple rewards. This integration with platforms such as Yearn Finance and Synthetix makes Curve a hub for liquidity maximization across the DeFi ecosystem.
As part of Curve's decentralized autonomous organization (DAO), CRV token holders can vote on protocol changes, including fee structures and liquidity pool adjustments. CRV tokens are earned through yield farming, further incentivizing participation in the platform's governance and liquidity provision.