The DE-Fi space is evolving faster than any of us can keep our eye on. Unfortunately, you can't keep chasing every project, and you need to pick your poison. The more you stretch yourself, the more you open yourself up to risk in this space, since all these platforms are deploying code all the time to remain competitive.
This is just my way of giving you all a friendly warning that these tools are super high risk and while the APR sounds great, it could be up in smoke, and you could be left with zero.
While Uniswap, and Sushiswap and all these other DEX's are the darlings of the industry, other projects are looking at whats going on in De-FI and trying to solve certain niche problems. I recently came across a project called Curve Finance, that has an interesting use case.
What is Curve Finance?
Curve is a decentralised exchange built on the Ethereum blockchain with a front end that looks like it was built in 1998, during the dial-up dot com boom. The Curve platform was launched in January 2020, so it's fairly new, and it's actually been making waves in the de-fi sector.
The platform has a decentralised liquidity pool on Ethereum designed for extremely efficient stablecoin trading. Curve allows users to trade between stablecoins with low slippage using their low fee algorithm designed specifically for stablecoins and earning fees.
Tokens provided for the liquidity pools are also supplied to the Compound protocol or iearn.finance and to generate more income for liquidity providers.
Currently, there 7 Curve pools:
- Compound, PAX, Y, BUSD, sUSD, ren, and sBTC which support swaps for A variety of stablecoins and assets.
You can visit the site here: https://www.curve.fi/
Why get involved in curve
If you know anything about stable coins both algorithmic and backed, you'll know that it can easily be overbought on a certain exchange and can drive up the price and likewise, if oversold the sales can break the peg.
Curve aims to provide stability by collecting a basket of stable coins in a liquidity pool and arbitrage the price changes between stable coins. To help maintain pegs and earn fees for LP providers in the process.
You can view the various pools on the site which are mixed with different baskets, depending on the basket and the limitations of liquidity on a certain basket, you can get a higher return for providing liquidity in certain pools.
Current APY ranges between 0.24% to 7.80%
You'll have to view the pools that support your stable coin and then pick the one you feel has a return you are happy with providing. You can provide one type fo stable coin or a range of them, that's up to you.
The curve exchange has 8 coins and 23 pairs with a current trading volume of $54,909,508
Side note: It would be cool if we could have wHBD/HBD live on an application like curve to help maintain its peg and earn some fees for helping keep the coin at its one dollar level
My impressions of Curve
Since its a DEX, you'll have to log in with wallet like Meta mask, but it also supports Tezor and Ledger wallet access which I thought was pretty cool.
I added a few USDT I had left in my meta mask to earn a return on it, but I also bought the CURVE token which you can also stake for an additional boost.
The CRV token has a max supply of 3,303,030,299, but its current supply is 111,098,100 and has a market cap of $54,751,77
I think the coin has some upside having been obliterated from its all-time high, so I feel I am picking up this coin relatively cheap, with $100 buy-in.
Yet again adding to my list of coins to watch, bleh, but hey the things we do for money am I right? I totally get if
MEGA DISCLAIMER: This is NOT financial advice, don't get me wrong I am willing to lose every penny on this trade and having fun messing around with new projects.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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