We are glad to have Curve answer our questions today!
How would you describe the main pillars of the product?
Curve is primarily about efficiency. It’s about swapping stable coins and other pegged assets with no slippage and at low cost. The protocol allows users to provide liquidity to facilitate those swaps and earn trading fees for it. On chain trading is in its infancy but it’s facing many hurdles; speed and costs are two that will come to mind for those who are used to trading on chain. The number of stablecoins in circulation has been growing steadily with various DeFi protocols and centralized exchanges issuing their own coin.
What is your team’s Strength?
The Curve team is primarily protocol-facing. Our focus is on building the most efficient tools for swapping coins on-chain and we think those tools speak for themselves. We are passionate about decentralized finance and more importantly bringing it to the masses. The team has seen tremendous growth with September volume reaching over $5B and this is only the start for the protocol.
Do you have any partners backing you up?
The protocol is at the center of DeFi so we work and chat with a lot of other DeFi teams. Yearn (previously iEarn) and Andre Cronje in particular have helped us to make Curve what it is today. More recently, we have also worked closely with Synthetix, REN Protocol and the Waves team. There are many forces at play in the Curve ecosystem, from centralized exchanges to DeFi protocols and we do our best to accommodate large as well as newer or smaller protocols.
About the future; Do you have any development plans you’d like to share?
Currently, the team is working on implementing the admin fee distribution, a community lead proposal that distributes 50% of the protocol trading fees to users who have vote-locked their CRV.
In terms of assets, one of the most eagerly awaited pools is the ETH/sETH pool which is currently undergoing audit. We are also working on a gold pool and other fiat currencies (EUR/CHF) which we are very excited to try out on the protocol. There has also been talks about adding tokenized LTC.
The original concerns with adding too many pools have seemingly vanished as governance participants realize that the protocol benefits from the added volume and trading from less liquid assets.
Introducing metapools has been fantastic for adding lower liquidity coins as they allow us to do so without diluting the liquidity of existing pools.
What’s the added value of Curve in comparison with other competitors?
Stable swaps are all about minimal slippage and low fees. Currently, Curve can accommodate eight-figure trades with virtually no slippage. Volume has seen tremendous growth over the past few months and we continue to explore new assets to become the one-stop shop for pegged and soft pegged assets. We are excited to start introducing new assets and eventually cross-asset swaps.
How are you aiming to provide scalability to your service?
We’ve recently had a rinkeby demo of Curve on zkSync with the help of the Matter labs team. More recent pools are gas optimised and are cheap to interact with even when gas is around 100 Gwei which is quickly becoming the new normal.
We’re extremely excited about Ethereum starting to grow on the second layer but we are also introducing meta transactions (free transactions) for certain Curve interactions like voting or Bitcoin native swaps. We are playing with some ideas of having those free transactions be rewards for users who are active in governance.
What makes Curve different from other crypto projects?
Curve is focused on remaining at the forefront of innovation for on chain market making and trading. We’ve recently introduced ecosystem grants which we hope will help other builders to join us in improving Curve and its ecosystem. Our culture is all about innovation and empowering builders who have already succeeded in making decentralized finance one of the most exciting spaces. We work on making Curve more accessible and as secure as possible so everyone can get their assets earning trading fees.