Curve Finance is a DEX platform that facilitates cross-asset swaps while offering low slippage and commissions. It was introduced in January 2020. The headquarters of the company is located in Switzerland.
Curve Finance overview
Let’s look at the key features of this platform:
- Supported cryptocurrencies
This exchange lets you swap stablecoins like DAI, USDC, USDT, TUSD, BUSD, sUSD, USDPAX, wBTC, FRAX, WETH, and many others. Rather than matching a purchaser and a seller, the system utilizes liquidity pools.
- Native token
The native token of this platform is known as CRV. It is used for incentivizing market makers and those who take part in governance.
- Funding methods
To trade on Curve Finance, you need to hold stablecoins in your wallet. You can link your wallet to the system, provided it is compatible.
- Wallets supported
This platform supports multiple hot and cold wallets. Some of the popular choices include MetaMask, Frame, Ledger, Trezor, and Coinbase Wallet.
How does Curve Finance work?
You can do the following things on this exchange:
- Swap stablecoins
After linking your wallet to the system, you can exchange the coins you hold for another. Due to the liquidity pool system, the Annual Percentage Rates (APRs) are high when the market is volatile and there are a lot of trades conducted. However, this also means that APRs can often fall.
- Participate in liquidity pools
For stablecoins to maintain their pegged value, there needs to be adequate liquidity. For this purpose, the platform has liquidity pools where you can contribute liquidity in return for incentives. Market makers get CRV tokens that can later be used for various purposes.
- Stake CRV tokens
You can stake CRV tokens to receive a portion of the transaction fees. You can vote lock your tokens to get veCRV. The number of tokens received depends on how long you’ve locked the CRV. Half of all transaction fees go to those who hold CRV tokens. The vote locking feature also lets you boost your provided liquidity by 2.5 times.
What can you buy on Curve Finance?
This platform is based on the Ethereum blockchain. This means you can quickly swap between ERC-20 tokens and Bitcoin tokens based on Ethereum. Some of the most popular tokens include CRV, RAI, DAI, USDT, BUSD, TUSD, LINKUSD, GUSD, ETH, sETH, and USDP.
Is Curve Finance safe?
The smart contacts of this exchange have undergone audits performed by mixBytes, Quantstamp, and Trail of bits. For the initial two months, the admin team can halt a contract using admin keys. This key cannot be used for upgrading the contract. This means users have full control over their holdings.
We were unable to find any reviews for this platform on third-party websites. It could be that not many people are currently signed up on this exchange.
Curve Finance fees, compatible wallets, and transactions
The fee for swapping coins on this platform is 0.04%. For withdrawals and deposits, the fees lie between 0% and 0.02%. This depends on the imbalance factor, which means there is no fee for balanced deposits and withdrawals. The supported wallets include MetaMask, Frame, Trezor, Ledger, Gnosis Safe, Fortmatic, Authereum, WalletConnect, Coinbase Wallet, Portis, Opera, Torus, Liquality, and Lattice.
What are the ways to trade on Curve Finance?
To trade tokens, you need to navigate to the Buy and Sell tab. Here, you can select the coin you wish to swap in the From window and the one you wish to receive in the To window. From the advanced options, you can also select the maximum slippage and the gas priority fee. When the deal I confirmed, you get an NFT and have to wait for six minutes for the trade to be settled.
Right now, there is no customer support team for this exchange. If you require help, you can consult the documentation provided on the website.
Should you trade with Curve Finance?
Curve Finance summaryCurve Finance summary
- Quick settlement of transactions
- Both hot and cold wallets supported
- Reward boosting via vote locking
- No dedicated customer support team
- Not suitable for novice traders