{"id":13479,"date":"2021-07-09T14:54:16","date_gmt":"2021-07-09T09:24:16","guid":{"rendered":"https:\/\/zebpay.com\/?p=13479"},"modified":"2021-07-09T14:54:16","modified_gmt":"2021-07-09T09:24:16","slug":"stay-ahead-of-the-curve-with-crv","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/stay-ahead-of-the-curve-with-crv","title":{"rendered":"Stay ahead of the Curve with CRV"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/stay-ahead-of-the-curve-with-crv\/#So_what_makes_Curve_special\" title=\"So, what makes Curve special?\">So, what makes Curve special?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/stay-ahead-of-the-curve-with-crv\/#A_quick_last_word\" title=\"A quick last word&nbsp;\">A quick last word&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><strong>Curve Finance is coming to ZebPay! Curve DAO\u2019s governance token <a href=\"https:\/\/zebpay.com\/in\/buy-crv\/\" target=\"_blank\" rel=\"noreferrer noopener\">CRV<\/a> has been a standout performer in 2021, hitting a high on Jan 17, before settling at \u20b9143. Rather than directly compete in the DeFi market maker space, Curve\u2019s stablecoin-driven model helps it build a niche for itself.&nbsp;<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/zebpay.com\/blog\/uniswap-an-exchange-playing-by-its-own-rules\/\">Much like Uniswap<\/a>, Curve Finance is a decentralized exchange or DEX, powered by an automated market-maker. So, you can use Curve the same way you use ZebPay &#8211; as a platform to exchange different crypto.<\/p>\n\n\n\n<p>However, instead of placing the responsibility of running this platform with any individual organisation &#8211; Curve has algorithms running the exchange.&nbsp;<\/p>\n\n\n\n<p>These algorithms are especially useful to exchange tokens which are priced similarly. You could swap two different Bitcoin tokens very easily using Curve, say WBTC for sBTC.<\/p>\n\n\n\n<p>As of June 2021, <a href=\"https:\/\/curve.fi\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">there are 39 active pools available<\/a> for swapping between stablecoins and assets on the platform. These pools work in the same way <a href=\"https:\/\/zebpay.com\/buy-cryptos\/\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay offers crypto-INR trading pairs.<\/a> Curve supports DAI, USDC, USDT, TUSD, BUSD and sUSD, as well as BTC pairs.<\/p>\n\n\n\n<h2 class=\"has-dark-gray-color has-text-color wp-block-heading\" id=\"h-so-what-makes-curve-special\" style=\"font-size:27px; color:#000;\"><span class=\"ez-toc-section\" id=\"So_what_makes_Curve_special\"><\/span>So, what makes Curve special?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Curve AMM model has four main components:<\/p>\n\n\n\n<ul><li>Liquidity providers who deposit tokens with Curve, for a fixed return.<\/li><li>Liquidity pools, which are the collection of all deposited tokens<\/li><li>Traders who actually use the platform to exchange one token for another<\/li><li>Trading algorithms, which efficiently price the tokens in the liquidity pool according to various factors<\/li><\/ul>\n\n\n\n<p>Unlike most DEXes, Curve has chosen to optimize its trading algorithm for exchanging stablecoins. This choice, to operate as a crypto-forex market means that it offers unique benefits to traders and liquidity providers.<\/p>\n\n\n\n<ul><li>Low trading fees \u2014 Curve offers traders far lower trading fees for stablecoin trades than Uniswap.<\/li><li>Minimized slippage \u2014 Whale traders and high-volume trading pairs are subject to slippage, but Curve\u2019s similar asset pools minimize this.<\/li><li>No impermanent loss \u2014 Liquidity providers on Curve supply stablecoin pairs that nearly eliminate impermanent loss.<\/li><\/ul>\n\n\n\n<p>A large part of these benefits comes from the fact that Curve can directly swap one stablecoin for another.&nbsp;<\/p>\n\n\n\n<p>Uniswap always trades against ETH, so to accomplish as direct (and cheap) a trade as possible, you need to trade using ETH or for ETH.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s say you wanted to exchange 10 USDT to 10 DAI. Uniswap would first convert your USDT to ETH, and charge a trading fee. It would then charge another trading fee to convert the ETH to DAI. Your swap will require two trades, making it more expensive to carry out.<\/p>\n\n\n\n<p>With Curve, you\u2019d only need one trade &#8211; and one trading fee.<\/p>\n\n\n\n<p>Let\u2019s make a quick model to show how this works. Every trade on Uniswap requires a 0.3% trading fee per trade, versus 0.04% on Curve:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>Uniswap<\/strong><\/td><td><strong>Curve<\/strong><\/td><\/tr><tr><td>USDT<\/td><td>10.00<\/td><td>10.00<\/td><\/tr><tr><td>Trade #1<\/td><td>USDT &#8211; ETH<\/td><td>USDT &#8211; DAI<\/td><\/tr><tr><td>Fees<\/td><td>0.03<\/td><td>0.00<\/td><\/tr><tr><td>Trade #2<\/td><td>ETH &#8211; DAI<\/td><td>NA<\/td><\/tr><tr><td>Fees<\/td><td>0.03<\/td><td>0.00<\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><\/tr><tr><td>Total Fees to be Paid (USDT)<\/td><td>0.06<\/td><td>0.00<\/td><\/tr><tr><td><strong>Total Fees to be Paid (\u20b9)<\/strong><\/td><td><strong>4.48<\/strong><\/td><td><strong>0.30<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>A difference of 0.056 USDT may not seem much. After all, that\u2019s only \u20b94!&nbsp;Do keep in mind though, that as you trade in greater volumes, that difference begins to add up very quickly.<\/p>\n\n\n\n<h2 class=\"has-dark-gray-color has-text-color wp-block-heading\" id=\"h-a-quick-last-word\" style=\"font-size:27px\"><span class=\"ez-toc-section\" id=\"A_quick_last_word\"><\/span><span class=\"has-inline-color has-dark-gray-color\">A quick last word&nbsp;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>May I reminisce for a moment? When I was a kid, I used to play <em>Pokemon Simulator<\/em> on PC. <em>Simulator <\/em>didn\u2019t bother with the animations or graphics aspects of the Pokemon games &#8211; just the battling. It threw out the most detailed statistics for crits, special attacks and same-type attack bonus. Years later, I discovered that Simulator was used by the pros; competitive Pokemon gamers to test out new strategies.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/X4k2MQmruq_2ZTFF1UxhTE9WZAW8-WeioxsOETaIDTtZ5kl9qHupMJFalLC1Hf86fYifGFGaamg5Y83SSezkcxsq4k3Xke7bHgpOQs9_oRf1VzdyaOVZSTfRjU8-vmzTvZDYjPMJ\" alt=\"Pokemon Simulator on PC\" width=\"559\" height=\"419\"\/><\/figure><\/div>\n\n\n\n<p>Why am I telling you this story? Because visiting <a href=\"https:\/\/curve.fi\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Curve\u2019s website<\/a> took me all the way back to playing <em>Simulator<\/em>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/TznuY-CpT2rHMq9B_E3AcScqcWD5UzTXwUrCF1IqA6xbq21EA9T3eErs2_PH3bHfAm9_Jt02QYl1jWzzHXNThx3XEC7-iBuzkS9sIRJBFfhKpzd8_HJ65fFJd5y5ZyMQveLYSaEY\" alt=\"Curve Website \" width=\"-96\" height=\"-78\"\/><\/figure><\/div>\n\n\n\n<p>Much like <em>Simulator, <\/em>Curve also offers unique benefits which suit high-level traders\u2019 needs.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-dots\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Curve Finance is coming to ZebPay! Curve\u2019s stablecoin-driven model helps it build a niche for itself in the DeFi space.<\/p>\n","protected":false},"author":1,"featured_media":13480,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13479"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=13479"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/13480"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=13479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=13479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=13479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}