Curve Finance is a place to take advantage of good liquidity and bonding curves by whosoever may be interested in trading stablecoin. Those who provide the liquidity are also almost sure of their money and interest.
Oftentimes, decentralized exchanges do not execute a trade as soon as it is opened and this usually results to losses. However, Curve Finance claims to have settled this issue when trading their stablecoins. Liquidity providers at Curve also enjoy more profits as the company gives its pooled assets to Compound Finance on loan at some interest rates.
It all started in September 2019 when Curve’s developers started writing the code. It took three months for the developers to present something. Unlike others, Curve is yet to organize a coin offering and it doesn’t even have a native token.
The people behind Curve’s progress are not made public but many of the progress shown on Github are from Michael Egorov, the Chief Technology Officer of NuCypher. Ethereum depends on NuCypher for its decentralized encryption and additional privacy.
For those who would like to use a decentralized means to exchange stablecoins such as BUSD and USDT, Curve says it can do it with minimum losses for them. There is a possibility for minimum loss since Curve uses bonding curves. Apart from exchanging stablecoins with little price slippage, lenders get more money when their stablecoins fetch them extra income from Compound. Usually, only those that hold very volatile assets get as many benefits as those that have stablecoins in Curve Finance.
Liquidity providers to Curve use yTokens for their residual income so theirs is not calculated based on Compound’s formula with cTokens. yTokens have the advantage of paying interest based on the primary token and by so doing, the interest rate is high even though the user doesn’t have to surrender the stablecoin.
How to start
Curve Finance services and benefits can all be accessed by visiting curve.fi. The stablecoins on this platform include TUSD, USDT, DAI, and USDC. To trade or deposit, a user needs a web3 wallet such as MetaMask to keep some assets.
Trading is simple here. The first step is to click the “Buy and Sell” tab after which the user will be prompted to choose a token and the amount to be sold or bought.
If you are interested in being part of the liquidity pool, go to the “Deposit” page. You will be asked to submit the amount of stablecoins you want to deposit.
To know more about Curve Finance and stay updated with its recent events, join the Twitter community or/and the Telegram group. If this article whets your appetite to know more about Curve Finance, Github will do well in enlightening you the more.