Delphi Daily

Quick Background

Curve is an exchange liquidity pool built on Ethereum to handle extremely efficient stablecoin trading (Tether, USDC, Dai, etc). The protocol uses a different curve vs other liquidity pools (Uniswap) that is more conducive to maintaining a near $1 peg, with higher extremes as pools fall out of balance. Users with stablecoins (and now forms of Bitcoin) can supply their assets to these pools to earn supplemental income as users trade in and out of these pools. Curve supports swaps between 10 assets today (Dai, USDC, USDT, TUSD, BUSD, sUSD, PAX, renBTC, wBTC, sBTC) which comprise 7 different pools. Liquidity providers earn their pro-rata share of fees which is currently 0.04%.

Target Market

Over the last 12 months ending June 29, 2020, stablecoins (Dai, USDC, USDT, TUSD, BUSD, sUSD, PAX and GUSD) handled $12.6T in volume. Tether accounted for 96% of this volume and not all of these stablecoins are supported by Curve today. While Curve is directly targeting this market between stablecoin exchanges, the total volume number of $12.6T is misleading as while this amounts to total stablecoin exchange volumes, only a fraction would be from one stablecoin to another as the majority of this volume is likely stablecoin to crypto, such as BTC or ETH. While the market for stablecoin exchanges is large, only a portion will ever be stablecoin to stablecoin as most trans

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