10 Basic Things About Curve Finance

1. Curve Finance is a decentralised exchange just like Pancake Swap, Uniswap and SushiSwap. Its distinguishing feature is that unlike other decentralised exchanges, it specializes in efficient stablecoin trading. The stablecoins it supports include DAI, USDT, BUSD and TUSD.
2. In order to maintain cost-effective fees and slippage, Curve Finance employs liquidity pools through its automated market maker mechanism. It then took its services to the next level by introducing a native stablecoin to underpin its ecosystem. This stablecoin is designed to use a new lending liquidation AMM called LLAMMA aimed to protect borrowers whose collateral drops below liquidation price. (https://chaindebrief.com/is-curves-new-stablecoin-defis-biggest-innovation-of-2022/)
3. In reference to point (2), Curve Finance developers released the white paper for a unique overcollateralized stablecoin, whose value is said to be underpinned by a cryptocurrency treasury that is expected to exceed the total supply of the crvUSD tokens in circulation (https://thedefiant.io/curve-crvusd-whitepaper)(https://decrypt.co/109156/defi-protocol-curve-finance-posts-code-upcoming-stablecoin)
4. Curve Finance’s AMM protocol enables trading, and liquidity pools (LP) are used to determine the price of an asset, without the need for an open book unlike in traditional centralised exchanges. Because of the presence of liquidity pools, you can buy or sell assets freely without having to confirm another party on the other side. (https://elementalcrypto.com/defi/what-is-curve-finance/)
5. When you deposit your assets into Liquidity Pools, you will earn CRV tokens, which will empower you to vote on governance matters put forth by CurveDAO.
6. Besides stablecoins, Curve also supports wrapped Bitcoin in various forms: wBTC, renBTC or pBTC. Hence, once you are done using your wBTC, you can swap wBTC for renBTC on Curve and then redeem it with real BTC, thus skipping the use of centralised exchanges in the process.
7. Curve launched a 3pool consisting of DAI, USDC, and USDT that appeared to be very well received. Also known as the Tri-Pool, the substantial amount of liquidity in these three stablecoins facilitates the most capital-efficient way for swapping the mentioned stablecoins.
8. Should you be cautiously optimistic about Curve Finance’s future, you may want to go beyond just providing your liquidity. Staking might be a good option for you. Take note that you have to lock CRV tokens on the Curve Finance. Doing so will yield you veCRV (Vote-escrowed) tokens. (https://www.reddit.com/r/CryptoCurrency/comments/yd61kr/how_to_make_money_on_curve_defi_voting_and_staking/?utm_source=share&utm_medium=ios_app&utm_name=iossmf)
9. Of course, the risk of using DEXs is that they are rather susceptible to hacks. $570k was stolen out of Curve Finance this August (https://www.coindesk.com/business/2022/08/09/defi-protocol-curvefinance-hacked-570k-stolen/) even though Binance subsequently managed to freeze or recover about $450k. (https://www.coindesk.com/tech/2022/08/12/binance-recovers-450k-stolen-from-curvefinance/?outputType=amp) Use it at your own risk!
10. Not resting on its laurels, Curve plans to deploy on zkSync’s mainnet next year, which bodes well for its future since zk-rollups are a nascent field that could go huge. (https://www.theblock.co/post/194998/curve-finance-to-deploy-on-zksyncs-mainnet-next-year?__s=e9fmqmd8kryv9w3cjehv&utm_source=drip&utm_medium=email&utm_campaign=Oh%20no,%20censorship%21%20Anyway...)