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Curve Finance DEX Tutorial

Curve Finance DEX Review & Tutorial

Written by LouiseElizabeth

20th September 2020

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Curve Finance (CRV) is a DEX (decentralized exchange), similar to the likes of UniSwap but for stable-coins. Because of this, the platform has very low slippage, low fees (0.04%), and little to no permanent loss for liquidity providers. Curve.Fi uses liquidity pools to allow its users to trade stable-coins (and tokenized Bitcoin) quickly, efficiently, and with some of the best rates for stable-coins around. Curve rewards the users who provide liquidity to their pools which are generated from trading fees on the system. Plus liquidity providers can earn the platform’s utility and governance token, CRV by staking their tokens.

Curve Finance CRV Tokens

Curve Finance have their own CRV token, which is an ERC20 governance and utility coin, launched on 13th August 2020. The aim of the token was to incentivise liquidity providers, as well as getting as many users involved as possible in the governance of the protocol. The tokens can currently by earnt through a process of staking LP tokens, or claimed if users deposited prior to 13th August 2020.

They are also available for trading on popular centralised exchanges such as Kraken and Crypto.com

How to Claim CRV Tokens

For users that used the platform prior to the CRV token’s launch on the 13th August, they use Curve.fi to claim for tokens. This can be found under the DAO/Vesting section of their site; http://dao.curve.fi/minter/vesting

With your associated wallet or account connected, you will then see how many tokens that are claimable, under unvested. When you are ready to claim, simply click on the Claim button at the bottom of the page.

How to Earn CRV Tokens

To earn CRV, you need to provide liquidity and deposit into any of the Curve Finance pools. After depositing, you receive a counter party liquidity provider (LP) token. These tokens are a wrapped representation of ownership of your deposit in the pool. For example yTokens are provided for PAX, Y and BUSD pool deposits and you’ll get cTokens for depositing into the Compound pool. These LP tokens can be staked via Curve.Fi to start earning CRV tokens.

You can start staking immediately when you deposit your funds into a pool, by selecting the button “Deposit & Gauge” . Or alternatively, you can head to the the DAO/Minter section of their site https://dao.curve.fi/minter/gauges.

With your associated wallet or account connected, locate your pool where you can enter to select the amount of LP tokens you wish to stake. You can claim CRV as often as you want to. Your rewards do not expire either.

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