Curve

Market Making

Curve is a decentralized exchange specialized in trading of highly correlated assets like stablecoins. It allows anyone to trade assets and provide liquidity to earn trading fees.

Risk Rating
Best
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Curve innovated the stableswap automated market maker (AMM) concept to enable a more efficient way to exchange similarly priced assets like stablecoins while maintaining low fees and low slippage.
What we like less
The Curve platform can be complex and requires more user understanding of the CRV token economics to fully take advantage.
What it means for you
Curve remains the most popular decentralized exchange (DEX) for you to earn yield through market making on stablecoins and tokenized assets given significant volumes and low risk.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: CRV
  • Tags: Market Making
Key Metrics
  • TVL: $1.9B (Rank #15)
  • TVL Ranking by Market Making: #0
  • Blockchain: Ethereum, Arbitrum, Polygon, xDai, Avalanche, Optimism, Kava, Base, Fantom, Celo, Moonbeam, Aurora, Harmony
  • Chain TVL
    • Ethereum: $1.77B
    • Arbitrum: $91.83M
    • Polygon: $22.15M
    • xDai: $10.95M
    • Avalanche: $5.26M
    • Others: $10.75M
Risk Assessment
Best
Protocol Code Quality
  • Code reviewed by several experienced auditors including Quantstamp and Trail of Bits
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2020; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Core contracts require on-chain voting for parameter updates
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
  • Curve`s automated market maker (AMM) technology is specialized to facilitate trades between highly correlated assets like two stablecoins. This minimizes price impact when trading. It is currently the main venue for trading stablecoins
Things to know about Curve

How Curve works

Curve launched with the goal of being an efficient fiat savings account for liquidity providers. To achieve this, the team at Curve designed the stableswap AMM algorithm which is a combination of the constant product (popularized by Uniswap) and constant sum formula. Trading occurs on a constant sum curve when the pool is relatively balanced and switches to a constant product curve when imbalanced. This allows for lower slippage and impermanent loss but is only applicable to similarly priced assets like stablecoins. The protocol charges a fee on every trade within a pool.

How Curve makes money

Curve makes money through protocol fees that are currently set at 0.04% for each swap with 50% going to liquidity providers and 50% to eligible CRV token holders (veCRV). The fees as well as pool parameters are decided by the Curve DAO or CRV holders.

How you make money on Curve

You earn swap fees for providing liquidity on Curve. Each pool also provides incentives in the form of native protocol tokens and the CRV token, which represents voting power in the Curve DAO. You can also stake CRV (veCRV) to earn a portion of trading fees.

Curve Pools
Curve USD Market Making
1.9%
Yield
$181M
TVL
Risk
B
Protocol
Curve
Chain
Ethereum
Curve Tricrypto Market Making
6.9%
Yield
$42M
TVL
Risk
B
Protocol
Curve
Chain
Ethereum
Curve Tricrypto Market Making
3.9%
Yield
$37M
TVL
Risk
B
Protocol
Curve
Chain
Ethereum
Curve USD Market Making
15.5%
Yield
$18M
TVL
Risk
D
Protocol
Curve
Chain
Ethereum
Curve USD Market Making
7.2%
Yield
$17M
TVL
Risk
B
Protocol
Curve
Chain
Ethereum
Curve ETH Market Making
2%
Yield
$16M
TVL
Risk
B
Protocol
Curve
Chain
Ethereum
Curve USD Market Making
1%
Yield
$15M
TVL
Risk
C
Protocol
Curve
Chain
Ethereum
Curve USD Market Making
8.2%
Yield
$15M
TVL
Risk
C
Protocol
Curve
Chain
Ethereum
Curve TricryptoLLAMA Market Making
13.5%
Yield
$9M
TVL
Risk
C
Protocol
Curve
Chain
Ethereum
Curve USD Market Making
3.1%
Yield
$9M
TVL
Risk
D
Protocol
Curve
Chain
Polygon