The DEFI world is growing each and every day. This means that there are constantly new platforms being added to the space. With so many different exchanges and programs, it can be difficult to keep up with knowing which ones are the best.
Curve.fi is a new platform that is quickly taking the DEFI world by storm. It is not the easiest platform to use however, so anyone intending to take part must first learn some basic information before they get started.
Whether you are ready to invest in Curve.fi or just want to learn more about it, keep reading for some basic insight to this fairly new DEFI platform.
What is Curve.fi?
Curve.fi is a DEFI exchange. This means that it’s users can utilize the platform to exchange cryptocurrencies for other cryptocurrencies without the oversight of a company or having to worry about KYC or AML laws. Like many other platforms in the space (such as UniSwap and PancakeSwap), Curve.fi uses liquidity pools for trades instead of buyer/seller matching. This means, if you want to trade an unlikely pair, like USDC to DAI, you can do this without having to find an exact trade. And the best part is, the people who work on the platform, the Curve developers, they have no access to your tokens, making this platform truly decentralized in nature.
Unlike other decentralized exchanges however, Curve.fi only offers trading pairs for different stablecoins. This means you can’t trade cryptocurrencies like Bitcoin and Ethereum on their website, but instead only coins which are backed by fiat assets.
Why Does the World Need Curve.fi?
Although it may seem a bit weird to just have an exchange for stablecoins, as the cryptocurrency world is growing, so too is the need for stablecoins. Stablecoins provided a much-needed way for institutions and businesses to get into the blockchain world. Although stablecoins are a decentralized currency, they are still a store of value that is much more borderless and easier to transfer and exchange than fiat dollars.
Recently, the US government has proposed many regulations that would make it more difficult to use cryptocurrencies like Bitcoin on a widespread basis. But these proposed regulations wouldn’t apply to stablecoins, which many large banks, such as JP Morgan, are beginning to use in order to make the process of moving money much faster.
This doesn’t mean that Stablecoins are unregulated however, and they currently have their own sets of regulations pending in the US government system. The difference is that a stablecoin is backed by fiat or other tangible assets, while cryptocurrency is only backed by technology and the laws of supply and demand. This means that the idea of stablecoins is a little bit easier for the skeptics to swallow as the world is becoming increasingly more adaptive to blockchain technology.
Why Should You Use Curve.fi?
As already mentioned, there are many different decentralized trading platforms out there in the world. So why should you use Curve.fi? Well, Curve.fi is known for having some of the lowest fees in the industry, and as mentioned above, they supply liquidity pools for stablecoins that are frequently left off of other decentralized exchanges.
You can also use Curve.fi to invest your stablecoins. This is great for someone who wants to get into the DEFI world of blockchain investing, but isn’t quite ready to invest their Bitcoin just yet. Curve.fi has several different options that allow users to stake their stablecoins in return for a percentage of the fee of the trade as well as an interest percentage simply for making their currency available to the liquidity pools on the platform.
Is Using Curve.fi Safe?
Many people shy away from the DEFI world because they are worried about its safety. And it’s true, there is no one overseeing your money when you use a platform like Curve.fi. But that’s also part of the draw to the DEFI world, because instead of someone telling you what to do with your money and reporting it to the government, software, which is not influenced by human temptations, is governing your tokens indiscriminately.
Of course technology like this is susceptible to hackers, but the Curve.fi platform is audited on a regular basis to ensure the highest level of security possible. As of the writing of this article, hackers have not been able to gain access to the platform, though it is assumed by the developers that many by this point have tried.
Should You Buy CRV?
Just like most other DEFI exchanges out there, Curve.fi has its own cryptocurrency abbreviated CRV. But, this token, which was released in 2020, is solely a governance token. This means that when you buy CRV, you are given some voting rights for the platform. If you participate in the liquidity investment pools as mentioned above, you will automatically be given CRV tokens.
But beyond that, unless you are really interested in the world of DEFI stablecoin exchanges, then Curve.fi is probably one you will want to pass on. This is because, although it might be a good investment, there are several other investments out there that are better. And when it comes to exchange tokens, like BinanceCoin, and CRV, you really only benefit from investing in the one on the exchange you plan to use. This is due to the fact that these tokens typically provide the best benefits to the exchange users.
So if you plan to exchange a lot of stablecoins on Curve.fi, then head over and buy yourself some CRV so you have some say in what happens on the platform. Otherwise, it’s probably best to just sit this one out.
The DEFI world is simply massive, and Curve.fi is another in a long list of exchanges fighting for a spot. If you are looking to exchange stablecoins, then it might be worthwhile for you to check this platform out. But if you aren’t, then you may have better luck looking at a different DEFI platform that features the currencies you desire in an interface that is much more beginner/user friendly. Just be sure you research any DEFI platform like Curve.fi thoroughly before you place you hard earned money on the line as the DEFI world is riddled with frequent scams.