DeFi 10123 September 2021

Curve Finance in DeFi Explained

Curve Finance in DeFi

Summary

  • Curve Finance is an automated market maker protocol
  • Users can swap between stablecoins at reduced fees and slippage
  • Curve supports swapping between tokenized versions of bitcoin

Curve Finance is an AMM (automated market maker) protocol in DeFi that is designed to allow users to swap between stablecoins at reduced fees and slippage. As a decentralized liquidity aggregator, investors can add their digital assets to different liquidity pools and earn fees through Curve Finance.

Automated market makers make use of pricing algorithms instead of order books. Because of this pricing formula on Curve, the platform is extremely friendly to users who want to swap tokens that will remain in the same market price range. This makes Curve an ideal platform for swapping stablecoins and other tokenized versions of a coin.

On Curve, you can swap between tokenized versions of bitcoin, including renBTC, WBTC, and sBTC.

Kibet Elikana
Write a comment