- Curve Finance began as a crypto swapping platform, offering traders low slippage trades across major stablecoins
- Hype around the imminent release of the protocol’s native token has pushed the project into the spotlight
- The team behind Curve are far from newcomers: It’s founder continues to work on NuCypher, an encryption protocol for smart contracts
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Curve Finance began as one of the most efficient stablecoin swapping protocols in DeFi. Now, with a governance token in the works, it has become one of the most popular projects in the space.
Following the launch of various tokens like COMP, BAL, and YFI, DeFiers are eager to get their hands on Curve’s CRV token.
Due to its various integrations around the DeFi space, you may likely have used Curve without knowing it. 1inch exchange, for instance, aggregates liquidity from Curve pools to ensure that users on their platform are getting the best prices possible. Depending on the size and tokens a trader is moving, it’s likely the trade is executed through Curve.
Another integration with various DeFi lending and borrowing platforms like Aave, dYdX, and Compound, also see Curve users earn interest on top of their trading fees. So, on top of the 0.04% on fees that LPs collect, they are also earning healthy interest rates.
In many ways, Curve Finance fulfills the “Money Lego” meme by interacting with other legos in the ecosystem. Even without this composability, Curve still serves arbitrage traders better than many of its competitors.
What Is Curve Finance? How Does It Work?
Curve Finance is an automated market maker (AMM) designed to facilitate low slippage swaps between tokens with similar prices. Dollar pegged stablecoins like DAI, USDT, and USDC or BTC-pegged tokens like sBTC, RenBTC, and WBTC can be traded for one another at the best prices.