Curve ETH | DEFI is automated market-maker optimized for stablecoins, working as an exchange on one side, and allowing liquidity providers to earn fees and lending interest on the other side.
Curve is an exchange liquidity pool on Ethereum (like Uniswap) designed for (1) extremely efficient stablecoin trading (2) low risk, supplemental fee income for liquidity providers, without an opportunity cost.
Curve ETH | DEFI allows users (and smart contracts like 1inch, Paraswap, Totle and Dex.ag) to trade between DAI and USDC with a bespoke low slippage, low fee algorithm designed specifically for stablecoins and earn fees. Behind the scenes, the liquidity pool is also supplied to the Compound protocol or yearn.finance where it generates even more income for liquidity providers.
Curve smart contracts were Audited by Trail of Bits.
However, security audits don't eliminate risks completely. Please don’t supply your life savings, or assets you can’t afford to lose, to Curve, especially as a liquidity provider.
Using Curve as an exchange user should be significantly less risky, but this is not advice.
Before trading, you’ll have to approve Curve to interact with your stablecoin balance, similar to most DeFi applications.
On the exchange page, select the asset you would like to convert (e.g. USDC), and the quantity (e.g. 1,000) - the exchange rate, and quantity that you will receive (including and all slippage and fees) will be displayed. The exchange rate might surprise you - that’s the power of Curve.