We are excited to announce our latest integration with Curve Finance.
With a staggering Total Value Locked (TVL) exceeding $2 billion, Curve Finance is undeniably one of the leading protocols in the DeFi landscape. Their dedication to facilitating stablecoin liquidity and seamless swaps has been pivotal for users and platforms across the board.
This isn’t just an integration; it's a redefinition of what's possible in DeFi. By incorporating Curve's unique product offerings, we're set to amplify the utility of yield-bearing assets. The resulting synergy will not only drive higher TVL into the Curve ecosystem but also deliver benefits to the user with amplified yield.
Curve Finance has solidified its position in the decentralized finance (DeFi) landscape as a leading decentralized exchange protocol. Its primary focus is on enabling seamless, low-slippage trades between ERC-20 tokens.
One of the distinctive features that contributed to its dominance is its unique Automated Market Maker (AMM) mechanism, known as the StableSwap invariant model. This model was meticulously designed to drastically reduce slippage during trades, a feature of significant importance, especially when dealing with stablecoins. The consistent value of these stablecoins is crucial, and the StableSwap model ensures they remain close to their peg.
Further enriching Curve's ecosystem is its vote-locking mechanism. This allows users to lock their $CRV tokens in exchange for $veCRV, a voting escrow token. Locked tokens grant users the power to vote on decisions within the Curve ecosystem, such as determining which liquidity pools are deemed worthy of receiving daily $CRV emissions. This system aligns the incentives of token holders with those of Curve. A longer lock period effectively reduces the circulating supply of the token, which could, in theory, lead to an appreciation in the price of $CRV.
Curve Finance's rise in the DeFi sector precipitated the "Curve Wars," where different DeFi protocols vied for dominance over Curve's $veCRV governance token. Traditionally, DeFi platforms lured liquidity providers by disbursing their own tokens as rewards. However, Curve pioneered a distinct approach. By accumulating $veCRV, protocols could manipulate the distribution of $CRV rewards to their own pools. Sensing the magnitude of this advantage, various protocols initiated campaigns to incentivize $CRV holders, striving to secure more $CRV rewards and a stronger voice in Curve's governance.
Enter Convex Finance, a pivotal player in these Curve Wars. They offered a novel solution to Curve's long-term CRV lock-in for governance power. At Convex, users could stake their CRV liquidity provided tokens directly on Curve, and in return, they would receive crvCVX tokens. This system allowed them to enjoy the combined benefits of increased voting power and yield. Consequently, Convex accumulated a significant portion of $veCRV, granting them substantial influence over Curve's emission of CRV tokens. To amplify user benefits, Convex also introduced tradable crvCVX tokens, providing users with enhanced liquidity. This strategy drew the attention of other prominent DeFi players, including Votium, DAOs, Frax, and Badger, each aiming either to capitalize on or counterbalance Convex's influence.
Entangle understands the pivotal roles of Curve and Convex in DeFi. Integrating them into our Liquid Vaults aims to tackle liquidity challenges and elevate capital efficiency, ensuring a seamless DeFi experience.
Our collaboration goes beyond integration; it's about shaping the evolution of DeFi. We're not just watching – we're facilitating. Entangle understands their vision and is keen to contribute to their goal of increasing liquidity retention via our Liquid Vaults. Users can transition from dealing with the limitations of single-utility LP assets to a more efficient and user-friendly DeFi ecosystem, achieved by transforming any LP asset into a versatile LSD.
With the added utility of Liquid Vaults, users can transform a previously stagnant LP Token into collateral which can be utilized for secondary protocols, including Lending & Borrowing or Derivative protocols. This opens up a new realm of capital efficiency for end users through yield farming strategies by expanding upon idle assets.
Here's an illustration of a user journey which demonstrates how to maximize your assets and provide stable liquidity through our integration with Curve and Convex Finance:
- Provide Liquidity on Curve.Finance: Start by depositing your assets, like FRAX & USDT, into Curve.Finance. In exchange, you'll get an LP (Liquidity Provider) Token, which is like a proof of your deposit.
- Stake with Entangle: Next, take your LP Token and stake it through our platform, Entangle.
- Let Entangle do the work: Behind the scenes, Entangle will then stake and automatically compound your LP Token using a smart contract on Convex, a platform known for maximizing yields.
- Receive Your Liquid Vault (LSD): After staking, you won't be left empty-handed! Entangle will give you a special token called a Liquid Vault or LSD. Think of it as a secondary receipt for your staked LP Tokens.
- Flexible Uses for Your Liquid Vault:
- Boost Capital Efficiency: You can use your Liquid Vault as collateral on our partner Lending & Borrowing platforms. This allows you to borrow against it without cashing out.
- Double-Dip on Rewards: Stake your Liquid Vault in a Derivatives Protocol. This way, you're earning rewards from both the exchange (Curve.Finance) and the Derivatives Protocol at the same time!
To try it for yourself, head to our Testnet to experience how we’re providing more utility to Curve and Convex’s ecosystem.