How to Exchange and Earn in Curve Finance?
What is Curve Finance?
Curve Finance is a decentralized exchange that uses liquidity pools on Ethereum. The main feature of Curve is that it is designed for stablecoin trading. Except exchanging, tokens held by the liquidity pools can also generate income for token suppliers as they are deposited to Compound protocol etc.
There are currently 7 Curve pools: Compound, PAX, Y, BUSD, sUSD, ren, and sBTC which support swaps for wide variety of stablecoins and assets.
Curve has also launched its own token CRV. CRV is Curve Finance native governance and utility token.
How to exchange in Curve.fi?
1. Choose the coins you want to swap to and from, enter the amount you want to exchange and you will see the exchange rate with fees and the amount you will.
2. Click ‘Advanced options’, to select the liquidity pool and customize the acceptable maximum slippage and gas fee.
3. The flow of transaction, time left can be seen in the upper right corner.
How to Provide Liquidity in Curve.fi on the example of Compound pool?
1. Select a liquidity pool in Curve. (In our example is Compound).
2. After entering the Compound pool, click ‘Deposit’ in the menu bar at the top of the page.
3. All DAI and USDC in the wallet are deposited by default. If you want to customize the amount of stablecoins deposited into the pool, click ‘Use maximum amount of coins available’ and remove X.
4. After the X is removed, DAI and USDC lines will change from the original dark gray to dark blue, which means you can manually set the number of stablecoins deposited into the pool.
5. Click ‘Deposit’ and click ‘Confirm’ on Huobi Wallet to authorize the transaction. You can see the amount and unit price of LP tokens obtained after the stablecoin is deposited into the liquidity pool and expected gas fee.
6. After authorizing a transaction on Huobi Wallet, the transaction will be issued. You can see two transactions waiting in transaction history of ETH: authorization transaction and DAI convert into LP Token. After the two transactions are successful, you can view the LP Token received in the balances interface. LP tokens represent your share of ownership in the pool and you will need them to stake for CRV.
*Please pay attention that every financial operation and decision has a potential investment risk, when making an investment think carefully, do not take any impulsive decision.