About Curve Finance
Curve Finance specializes in stablecoin and pegged asset swaps using a unique bonding curve algorithm optimized for assets that should trade at similar prices. Launched by Michael Egorov in January 2020, Curve offers just 0.04% fees with minimal slippage, making it the go-to DEX for large stablecoin trades. The veCRV governance model, where users lock CRV tokens for voting power, spawned the 'Curve Wars' as protocols compete to direct liquidity incentives. Curve expanded into lending with LLAMMA and launched crvUSD, its over-collateralized stablecoin with unique liquidation mechanisms.
Features
Pros & Cons
Pros
- Lowest slippage for stablecoins
- Extremely low trading fees
- Deep liquidity for pegged assets
- Powerful governance incentives
Cons
- Complex and dated UI/UX
- Primarily stablecoins only
- Steep learning curve for governance
How Curve Finance Works
Curve uses a specialized StableSwap algorithm optimized for assets that should trade at similar prices (stablecoins, wrapped tokens like wBTC/renBTC). Unlike Uniswap's constant product formula, Curve's curve is flatter around the 1:1 price, allowing massive trades with minimal slippage. For example, swapping $10M USDC to USDT might have 0.01% slippage on Curve vs 1%+ on Uniswap. The veCRV system lets users lock CRV tokens for up to 4 years to earn trading fees, boost LP rewards, and vote on which pools receive CRV emissions.
Getting Started with Curve Finance
Visit curve.fi and connect your wallet - the interface may look dated but is fully functional
Navigate to the 'Swap' tab to exchange stablecoins or pegged assets
Select your input token (e.g., USDC) and output token (e.g., DAI)
Enter the amount - Curve excels at large trades with minimal slippage
Review the exchange rate and confirm the swap in your wallet
For liquidity provision, explore 'Pools' to deposit and earn trading fees + CRV rewards