Curve Is a trading protocol based on the automated market Maker (AMM) model. It mainly focuses on the trading of stable currency, encapsulated assets (e.g. WBTC \ RENBTC), pledged assets (stEth), but recently it has also begun to explore the trading business of unstable consideration assets. Compared with other trading protocols such as Uniswap and Sushiswap, Curve provides more concentrated trading pairs, featuring extremely low trading slip points and fees, which can meet the huge demand for asset trading.
Curve as a decentralized trading platform, the main difference between Curve and Uniswap and other comprehensive spot trading platforms lies in transaction types. At present, Curve mainly focuses on stablecoin (USD assets) and other BTC and ETH derivatives with a target price of 1:1. In addition, after Curve V2 was released, Curve also launched Tricrypto pool, opening up the exchange of USDT, WBTC, ETH and other unstable consideration assets. To be sure, unlike mainstream AMM spot trading platforms such as Uniswap, which mainly serve market makers and traders, Curve has three main customers. The first two are market makers and traders. The third category of service objects has been ignored by most people, they are the issuance and operators of the derivative assets of stable currency, BTC and ETH as well as note issuers. For Curve, the magnitude of the third category determines the ceiling of its stable currency and stable consideration asset business.
For the staboin issuer, the first priority is to ensure that the staboin price does not fall off anchor, and that the staboin has an excellent exchange depth of low slip point at the anchored price point. These two points are the major premise for the staboin to be able to carry out subsequent scenes and user expansion, and also the starting point for users' confidence in the staboin.
Curve is the best solution to solve the two pain points of stable-coin issuers. Therefore, most stable-coin issuers choose to establish a stable-coin exchange pool on Curve and provide token subsidies at the initial stage to encourage market makers to provide liquidity.
LUSD and FRAX, which are overpledged by Liquity, an emerging currency market protocol, have also established an excellent depth on Curve, and the excellent exchange depth is an important source of confidence for users to accept a stable currency.