{"id":915935,"date":"2021-04-30T13:56:50","date_gmt":"2021-04-30T03:56:50","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=915935"},"modified":"2026-03-09T18:28:33","modified_gmt":"2026-03-09T22:28:33","slug":"curve-finance","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/cryptocurrency\/defi\/curve-finance","title":{"rendered":"How to use Curve Finance for DeFi"},"content":{"rendered":"

Curve Finance is a decentralised exchange (DEX)<\/a>. Although similar to other DEXs such as Uniswap<\/a> and Balancer, Curve Finance focuses on the exchange of stablecoins, such as USDC or DAI, and on wrapped versions of assets like wBTC or tBTC.<\/p>\n\n

As a result of the increase in cryptocurrency adoption and DeFi yield farming<\/a>, many traders now have an increased need to swap stablecoins as efficiently and economically as possible.<\/p>\n\n

\n
\n

\n \n \n <\/path>\n <\/path>\n <\/svg>\n <\/span>\n Must read<\/span>\n <\/h4>\n
\n \n\n

Curve Finance and other DeFi protocols are experimental works in progress. Funds deposited into Curve Finance or DeFi protocols in general can be at risk of smart contract vulnerabilities, malicious developers and hacks. Curve Finance is governed by token holders through a DAO (decentralised autonomous organisation).<\/p>\n\n\n <\/div>\n <\/div>\n<\/div>\n\n

What is Curve Finance?<\/h3>\n

Curve incentivises an automated market maker (AMM) mechanism alongside liquidity pools. By focusing on assets that behave similarly (stablecoins<\/a>), Curve Finance can offer low fees, a small amount of slippage and a reduced risk of impermanent loss.<\/p>\n\n

Alongside the ability to swap stablecoins, Curve Finance also rewards users that provide liquidity to the exchange. Liquidity pools remove the need to match a buyer with a seller to complete an exchange. Instead, users trade in and out of a pre-funded pool of tokens, which results in a more efficient transaction.<\/p>\n\n

Curve Finance is a non-custodial service provider, so it does not have direct access to a user's cryptocurrency tokens.<\/p>\n\n

\n
\n Disclaimer:<\/b> This information should not be interpreted as an endorsement of cryptocurrency or any specific\n provider, service or offering. It is not a recommendation to trade.\n <\/div>\n<\/div>\n\n\n\n

How to use Curve.fi<\/h3>\n

Curve Finance works on the Ethereum network<\/a>. In order to incentivise Curve Finance, you need to create a web 3.0 Ethereum wallet, such as MetaMask, and connect it to the exchange.<\/p>\n

How to use MetaMask with Curve<\/h3>\n

MetaMask is an online digital wallet created for the storage of Ethereum-based (ERC-20) cryptocurrencies. The MetaMask digital wallet is often required in order to transfer cryptocurrencies to a DEX such as Curve Finance.<\/p>\n\n

How to set up MetaMask:<\/p>\n

    \n

    <\/p>

  1. Install MetaMask on your browser.<\/strong> Go to your browser's extension page or store and search for MetaMask (or use this link)<\/a>. The steps we will go through here are based on the Google Chrome browser but should still be applicable to other browsers.<\/li>\n

    <\/p>

  2. Click \"Add to Chrome\" followed by \"Add Extension\".<\/strong><\/li>\n

    <\/p>

  3. Create an account and a wallet.<\/strong> Click on the MetaMask extension and click \"Try it Now\". You should be prompted to agree with the terms and conditions and to set up a password for your digital wallet.<\/li>\n

    <\/p>

  4. Write down the secret seed phrase.<\/strong> You will be shown a list of 12 words. This is your seed phrase and can be used for the recovery of your digital wallet if you forget your password. This seed phrase is extremely important and must not be shared with anyone else. Anyone with your seed phrase has access to your cryptocurrency. Write the 12 words down physically or store them somewhere offline like on a thumb drive.<\/li>\n

    <\/p>

  5. Verification of seed.<\/strong> Verify your seed phrase on the next page by selecting the words in the correct order. Once verification is complete, your MetaMask digital wallet will be ready to go.<\/li>\n

    <\/p>

  6. Deposit cryptocurrencies.<\/strong> Click on the MetaMask extension to view your account. You can now see your public address to which cryptocurrency can be sent from an exchange or your own hardware wallet.<\/li>\n<\/ol>\n

    Once you have cryptocurrencies on your MetaMask digital wallet, you can then connect your wallet to Curve Finance via the Curve Finance website.<\/p>\n

    How does the CRV token work?<\/h3>\n

    CRV, the native token to the Curve Decentralised Autonomous Organisation (Curve DAO), runs the Curve Finance system. The token was introduced in 2020 for governance and as a reward for liquidity providers. Along with other staking rewards, liquidity providers now receive CRV when lending their cryptocurrencies to the system, which allows lenders to influence the direction of the platform.<\/p>\n\n

    Governance protocols allow CRV holders to vote on decisions involving the Curve Finance exchange. A holder's influence depends on the amount of CRV held and also on the time that the CRV has been held. Those holding CRV for the longest amount of time hold the most weight when voting.<\/p>\n

    Compare exchanges which offer the Curve DAO Token<\/h4>\n
    \n
    \n <\/div>\n
    \n
    \n