What is Curve Finance?
Curve Finance is an automated market maker DEX that allows users to swap stablecoins and other pegged assets.
Background
Michael Egorov founded Curve Finance in 2020.
How Does It Work
$CRV is the governance token of Curve Finance. Users can lock $CRV tokens for a maximum of 4 years to obtain $veCRV tokens. Users who lock tokens can direct $CRV token rewards to any liquidity pool on the protocol. Users who lock tokens also earn a share of the fees generated by the protocol and vote on governance proposals.
Curve Finance is one of the core protocols of DeFi. Protocols like Yearn and Convex are built to take advantage of the Curves incentive model to optimize user fees and earnings.
Key Takeaways
- $CRV is the governance token for Curve Finance.
- Users need to lock tokens in vote escrow for up to 4 years to vote with $CRV. Locking $CRV allows $veCRV holders to direct further $CRV emissions to specific liquidity pools.
- Curve Finance is a core DeFi primitive with many protocols built on top of it.
