Mar 25, 2023

Curve Finance

Ethereum
Arbitrum
Aurora
Avalanche
Celo
Fantom
Kava
Gnosis
Moonbeam
Optimism
Polygon
DEX

How to Start

Introduction

Curve Finance is the leading Automated Market Maker (AMM) DEX in the decentralized finance environment. Curve Finance offers its services on the Ethereum, Arbitrum, Aurora, Avalanche, Celo, Phantom, Kava, Gnosis, Moonbeam, Optimism, and Polygon blockchains. The goal is to provide high liquidity, low slippage, and low fees in transactions between ERC-20 tokens.

In this article, we'll go through how to get your first cryptocurrencies on one of these blockchains, how to work with the Curve platform, the supported wallets, the different features of the platform, and how to use them. For illustrative examples and individual explanations, we will use the MetaMask wallet.

How to start?

First, you need to decide on which of the supported blockchains you want to use Curve Finance, and you will then need to send a sufficient amount of digital assets to your MetaMask. We chose the Avalanche blockchain for our analysis.

You can send your first assets from a centralized exchange (CEX) such as Binance. On the Avalanche blockchain, fees are paid in $AVAX, so the easiest way is to send enough $AVAX from Binance via the AVAX C-Chain network to your MetaMask address. The moment the $AVAX arrives at your MetaMask, new options will open up in DeFi on Curve Finance.

If you don't know how to get your digital assets on MetaMask, add networks, or bridge between blockchains, check out our DeFi guide where you can learn everything step by step.

Supported Wallets

MetaMask / Trezor / Ledger / Coinbase Wallet / Fortmatic / WalletConnect / Portis / Torus / Phantom / Frontier

Contracts

  • Ethereum $CRV contract address: 0xD533a949740bb3306d119CC777fa900bA034cd52
  • Arbitrum $CRV contract address: 0x11cDb42B0EB46D95f990BeDD4695A6e3fA034978
  • Avalanche $CRV contract address: 0x47536F17F4fF30e64A96a7555826b8f9e66ec468
  • Celo $CRV contract address: 0x0a7432cF27F1aE3825c313F3C81e7D3efD7639aB
  • Fantom $CRV contract address: 0x1E4F97b9f9F913c46F1632781732927B9019C68b
  • Gnosis $CRV contract address: 0x712b3d230F3C1c19db860d80619288b1F0BDd0Bd
  • Optimism $CRV contract address: 0x0994206dfE8De6Ec6920FF4D779B0d950605Fb53
  • Polygon $CRV contract address: 0x172370d5Cd63279eFa6d502DAB29171933a610AF

To search for transactions, token addresses and other necessary information, use the explorers of your chosen blockchain:

Platform Functions

Swap: here, you swap assets with each other as you need, whether it is for trading purposes or to compose an LP

Pools: in pools, you can provide liquidity, for which you will receive rewards from fees set by the protocol for executed merchant swaps

Dashboard: an overview of your active investments on Curve Finance

Governance: the place for $CRV holders collectively discuss, propose and vote on updates and the future direction of Curve Finance

Blockchain selection: this enables you to switch between the blockchains through which you can use the platform

Connect wallet: this is where you connect your supported wallet, choosing from the ones mentioned above

Where to Put Tokens

Before we create an LP, we need to know what cryptocurrencies we want to provide liquidity for, as well as considering the opportunities and risks associated with providing liquidity. We have written more about opportunities and risks in the article, Curve Finance - Opportunities & Risks. Liquidity pools on Curve Finance consist of 2 to 5 different cryptocurrencies.

Curve

We will then be able to swap the cryptocurrencies we need to compose an LP in the "SWAP" interface of the platform.  We have chosen the USDC coin pool on the Avalanche blockchain, so we will swap half of the $USDC.e to $USDC. If you are going to swap for the first time, you will need to click on "Approve Spending," then execute the transaction by clicking on "Swap" as shown in the screenshot. We also need to confirm both of these actions in our MetaMask wallet.

Curve

Once we have prepared the cryptocurrencies for the composition of a specific LP, we will go to the "POOLS" section of the platform, where we will select the specific LP, for which we want to provide liquidity, from the list. We will earn passive income for doing this, which comes from the fees paid by people trading the pair for which we are providing liquidity. We have chosen the $USDC pool on the Avalanche blockchain and we create the LP by entering the amount of cryptocurrencies we want to provide. As with the swap, we need to click on "Approve Spending," then execute the transaction by clicking on "Deposit" as shown in the image below. We also need to confirm both of these actions in our MetaMask wallet.

Curve

At this point, we can select "DASHBOARD" in the menu, and we can then see our current LP positions and their detailed information.

Curve

We can then stake our LPs to get extra rewards. You will only get extra rewards if the liquidity pool also offers tAPR. Our $USDC pool doesn't offer them, so we won't get any extra rewards for staking, but we can at least show you how to do it, as the process is the same for all liquidity pools.

In "POOLS," select the appropriate liquidity pool from the list, then click on stake. As with the previous steps, we then select the amount of LP tokens we want to stake (preferably all of them), then we need to click on "Approve Spending" and execute the transaction by clicking on "Stake" as shown in the image below. Again, we will need to confirm both of these actions in our MetaMask wallet.

Curve

Sources

Analyst Opinion

We've explained how to get your first cryptocurrencies on your MetaMask so you can get started using Curve Finance. We've also covered the basics of how swapping and liquidity providing work on the Curve platform. You can learn more about the risks and opportunities on which you can capitalize in our article, Curve Finance - Opportunities & Risks. If you are just getting started with DeFi, I always recommend having a small amount of capital that you are willing to sacrifice for the experience. Investing in decentralized finance involves many risks in addition to opportunities and profits. You always need to diversify your investments, and conduct thorough analysis of the project before you put your money anywhere. For a complete analysis and detailed functioning of Curve Finance, read our article, Curve Finance - Protocol.

René Užovič

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