Curve Finance | Exchange ERC-20 tokens with low fees and low slippage through this DeFi’s leading AMM!

by | Oct 11, 2022 | Project Spotlight | 0 comments

This article is going to be very for the entire crypto community members. Users and decentralized protocols can exchange ERC-20 tokens (DAI to USDC for example) through Curve Finance with low fees and low slippage. It can also be the reason behind making money for liquidity providers. Keep reading the article to know more details.

About Curve Finance:

Curve is a DeFi’s leading AMM (Automated Market Maker) through which hundreds of liquidity pools have been launched and incentivized by Curve’s DAO.  Users rely on Curve’s proprietary formulas to provide high liquidity, low slippage along with low fee transactions among ERC-20 tokens.

In the simplest terms, curve finance is like an exchange. It let the users and other decentralized protocols exchange ERC-20 tokens (DAI to USDC for example) through it with low fees and low slippage. Unlike exchanges that match a buyer and a seller, Curve uses liquidity pools. To achieve successful exchange volume, Curve needs a high volume of liquidity (tokens) and therefore offers rewards to liquidity providers.

And you know what? There are some additional benefits of using it as well. Like, curve is non-custodial, meaning the Curve developers do not have access to your tokens.  Curve pools are also non-upgradable, so you can have confidence that the logic protecting your funds can never change. This simply means that you don’t need to worry at all about the security while using curve as an exchange.

Introducing $CRV: 

 $CRV is the governance token of Curve Finance with time-weighted voting and value accrual mechanisms which was launched on the 13th of August 2020. The main purposes of the Curve DAO token are to incentivize liquidity providers on the Curve Finance platform as well as getting as many users involved as possible in the governance of the protocol. 

Liquidity providers on the Curve platform receive $CRV for providing liquidity. This ensures the protocol continues offering low fees and extremely low slippage

CRV can now be staked (locked) to receive trading fees from the Curve protocol. A community-lead proposal introduced a 50% admin fee on all trading fees. Those fees are collected and used to buy 3CRV, the LP token for the TriPool, which are then distributed to veCRV holders.

Supply

The total supply of 3.03b is distributed as such:

  • 62% to community liquidity providers
  • 30% to shareholders (team and investors) with 2-4 years vesting
  • 3% to employees with 2 years vesting
  • 5% to the community reserve

The initial supply of around 1.3b (~43%) is distributed as such:

  • 5% to pre-CRV liquidity providers with 1 year vesting
  • 30% to shareholders (team and investors) with 2-4 years vesting
  • 3% to employees with 2 years vesting
  • 5% to the community reserve

A Multi-chain Network:

Curve exists across several chains, with several more planned.  Curve’s primary chain will always be Ethereum, but other side chains have advantages including speed and cost.  In order to use Curve on other chains, you must typically send your funds from Ethereum to the sidechain using the chain’s bridge.

In order to use Curve on chains other than Ethereum, you will need to bridge funds to the sidechain.  The Curve token can be bridged across some chains, but does not always have full functionality.  Staking of $CRV for veCRV must be done on Ethereum.  Rewards voting for cross-chain gauges occur on Ethereum.

To know more about the amazing project, you all can go through their socials given below.

Website: https://resources.curve.fi/ 

Twitter: https://twitter.com/curvefinance 

Telegram: https://t.me/curvefi 

Discord: https://discord.gg/9uEHakc