Curve Finance is a decentralized platform, liquidity aggregator, and automatic market maker that was founded on Ethereum. Initially designed for stablecoin trading, the facility is a leader among the competitors in this sphere. The platform is irreplaceable when large amounts of stablecoins should be swapped.
Curve Finance platform doesn’t deal with an order book and is regulated by the automated pricing mechanism. Curve Finance used to be the engine of well-known decentralized aggregator yearn.finance. But then it launched its governance token CRV and started developing independently.
The founder of the platform, Shachar Bialick, has long been interested in different decentralized protocols and studied different concepts. Uniswap didn’t seem interesting for the specialist and he started developing his own protocol in 2018. He was planning to launch DEX StableSwap and even published a whitepaper in 2019, but then changed the name to Curve Finance. In May 2020 the company released a token and turned into DAO. The transition to this form of organization was performed to avoid legal issues.
The exchange was created with the goal to swap between stablecoins. Users can easily apply the service if they have an Ethereum wallet. The advantage of the service is swapping with low fees and slippage. The customers find it very helpful when they have to swap between the tokens in the same price group. Using a decentralized liquidity aggregator, users can earn fees contributing to different liquidity pools.
The service is sometimes called ‘Uniswap for stablecoins’. Employing a special formula, the service is also good for swapping between the tokenized versions of a coin, for instance, such versions of Bitcoin as renBTC, sBTC, and WBTC.
The number of the liquidity pools for swapping has reached 17 at the time of writing and continues to grow. It’s possible to swap between different assets and stablecoins. The popularity of stablecoins is determined by the state and conditions of the market. Some stablecoins enter the top of the most popular such as Tether, DAI, USDT, etc. The system works perfectly when the tokens are able to maintain their pegs. When large amounts are swapped, the platform works on minimizing the slippage.
The team of the platform has developed numerous asset pools, which are the basis of the facility. These pools are approximately of the same value and provide incredibly high ROI that often surpasses 300% per year. High yield became the result of the platform’s investing into other DeFi exchanges, for example, Compound. Automatic swapping of stablecoins helps to generate the highest profit.
Curve Finance technologies
Curve Finance DAO was developed with the help of Aragon, a DAO that enables third parties to create their DAOs without effort using the instruments of the company and its set of pre-programmed smart contracts.
It should be mentioned that the roadmap of the project is not clear to the end. The facility plans to support other assets as well. Apart from stablecoins, the founder of the platform mentioned the possibility of adding cryptocurrencies to the trading platform as well. However, this requires the creation of additional bonding curves supporting the volatile assets. It has already added different variants of wrapped Bitcoin.
Curve Finance security
The team of the company is very meticulous about security. The code of the facility was audited three times to reveal potential risks. Also, smart contracts of CRV token passed two auditions before. To reveal errors, the facility attracts bug bounties that can reach 50 000 USD for review of the DEX code.
Curve Finance token
CurveDAO also has a token known as CRV that is continually distributed to liquidity providers of the protocol. The trading fee is 0,04% received directly by liquidity providers.
The platform launched a CRV token, which is an ERC-20 token, on August 20, 2020. This is a governance token issued to govern Curve Finance DAO. Locking their CRV the users vote in this way and decide different governance issues that refer to the creation of new yield pools, fee system, and the burning scheme for the token of the platform. The voting power depends not upon the amount locked in this case but on the term of locking.
Curve Finance team
The team of the company that is based in Switzerland includes 5 people: a coder, CTO, and members of the team involved in marketing, SMM, etc. The founder and CEO is Shachar Bialick operating from London, the UK. He has founded a few other projects such as SmartEQ and DoorCenter and has extensive experience in the financial and IT fields.
The other co-founder is Michael Egorov, who takes the position of CTO in the computer company NuCypher. He is a Russian physicist with great experience of work with cryptocurrencies. His current fintech company NuCypher specializes in encryption, although the token of the company is not listed at present on famous exchanges.
Egorov was criticized publicly by Andre Cronje for holding most CRV, as this is a threat to the decentralization of the platform. Michael Egorov responded and publicly promised not to abuse his power.