Curve is a popular automated market maker (AMM) platform that offers an efficient way to trade tokens while keeping fees and slippery points low by accommodating only pools of liquidity made up of assets that behave similarly. While this approach can reduce fees for liquidity providers who provide tokens to the pool, Curve incentivizes their participation by integrating with external DeFi protocols and offering incentives in the form of CRV tokens and interest.

It allows users and other decentralized protocols to exchange stablesoins (such as DAI to USDC) with low fees and slippage points.

Unlike mainstream AMM spot trading platforms such as Uniswap, which mainly serve market makers and traders, Curve has three main audiences. 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 staboin issuers, the first priority is to ensure that the staboin price does not fall off anchor, and to have 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. However, these two things are not so easy to do, especially the "low slip point for huge trades" one. Curve is the best solution to solve the two pain points of stabocoin issuers at present. Therefore, most stabocoin issuers choose to establish a stabocoin exchange pool on Curve and provide token subsidies at the initial stage to encourage market makers to provide liquidity.

On an AMM like Curve, the liquidity pool keeps trying to "buy low" and "sell high." Examples are the stablesoins USDC and DAI, which are pegged to the dollar. Selling DAI on Curve triggers the following sequence of events: More DAI are added to the liquidity pool and the liquidity pool becomes unbalanced because there are now more DAI than USdcs compared to USdcs, The liquidity pool sells DAI at a slightly discounted price to incentivize the balance liquidity pool to rebalance its DAI to USDC ratio by selling DAI at a discounted price, the liquidity pool attempts to restore the liquidity pool to its original state. Because the assets in the curve pools are stable in price with each other, trading between them causes the least volatility compared with other AMM liquidity pools. On an AMM like Uniswap or Balancer, the liquidity pool can be made up of any token and volatility is high. By limiting pools and the types of assets in each pool, Curve minimizes impermanence losses, an AMM phenomenon in which a liquidity provider suffers a loss in the value of a token relative to the market value of that token due to fluctuations in the liquidity pool. However, volatile losses are not always negative. Volatility and slippage provide opportunities for users trying to profit from entering and exiting liquidity pools at the right time. By balancing the high-risk (and sometimes high-return) aspects of volatility, Curve has turned to what is known as DeFi combinability to attract liquidity providers. This means that investments on Curve can be used to earn rewards elsewhere in the DeFi ecosystem.

Pledge mining, community governance voting.

Unlike Uniswap or Balancer, Curve does not attempt to keep the values in different assets always equal or proportional to each other (i.e., balanced). This allows Curve to concentrate liquidity close to the ideal price of similarly-priced assets (in a 1:1 ratio) in order to have liquidity where it is most needed. Therefore, Curve can achieve higher liquidity utilization compared with these assets. AMM's asset-like approach is not limited to stablecoins. Tokenized versions of Bitcoin such as wBTC and renBTC also make up Curve's liquidity pool. Bitcoin is very volatile compared to stabocoins, but the Curve method still works because tokens in the Curve pool don't need to be stable, they just need to be stable relative to other tokens in the same pool. In other words, wBTC and renBTC can be in the same Curve liquidity pool, while wBTC and USDC will not be a functional combination.

The core token of Curve project is CRV, which will be issued on August 13, 2020 with a total amount of 3.03 billion. The total amount is distributed as follows: 62% will be distributed to liquidity providers, 30% to shareholders, 3% will be linearly unlocked to team members within 2-4 years, and 5% will be linearly unlocked within 2 years as community reserve. Currently, the total amount of CRV released is about 753 million, and the average daily release is about 1.45 million.

Low fees, slippage, and the vagaries of any decentralized exchange (DEX) on Ethereum.

Curve, as a decentralized trading platform, differs from Uniswap and other comprehensive spot trading platforms mainly in the types of transactions. At present, the types of transactions of Curve mainly focus on stable currency (USD assets) and other BTC and ETH derivatives with a target price of 1:1.

Curve is a great uniswap-like automated decentralized exchange designed for staboins. Its simple, cool, '90s-style interface is easy to use, and anyone can benefit from the low slippage of trading between stablesoins. Curve also has a revenue benefit over Uniswap for advanced users who understand the risks involved.

Challenges from DEX like Uniswap, new business development difficulties in unstable asset trading, market share concentration and regulation of stablecoin.

In general, Curve has obvious competitive advantages in the field of stable consideration asset transaction. Its excellent token economic model further strengthens its moat and provides strong support for its token price. However, Curve looks overvalued at this stage, both vertically and horizontally compared to historical valuations and other trading agreements.