Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards.

Daily top performer — Pyth Network (PYTH)

The S&P 500 dropped 1.5% to 5,282.70 this week, down 5.9% in April and 10% year-to-date, led by tech losses. Real estate and energy outperformed, while political pressure on Fed Chair Powell and inflation concerns weighed on sentiment. Gold dipped 0.6% to $3,319 after a record high, as Powell’s stagflation warning tempered its rally. Despite the pullback, the uptrend remains intact. The Coindesk Indices, which tracks the broader crypto market, are up by 0.77%, with Bitcoin and Ether rising 0.64% and 0.72%, respectively, over the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is PYTH, up 10.1%, following the launch of Pyth Entropy for secure on-chain random number generation by Soneium.

Pyth Network (PYTH),  is a blockchain oracle system that delivers real-time crypto price data to blockchains, enabling smart contracts to react to market changes. Soneium 

 Pyth Entropy, a tool for securely generating random numbers on-chain. Two apps, HandsNFT AI and 2p2e, are already utilizing Pyth Entropy to create unpredictable and engaging experiences.

Check out the latest prices, charts, and data of 

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards. This approval follows recent changes to local laws, with China Asset Management (ChinaAMC) partnering with OSL Digital Securities to launch the ETF by May 15. The ETF will offer exposure to Ethereum staking, transforming it from a passive investment into an active participant in the Ethereum network. The staking process is powered by Kiln, with OSL providing custody and insurance services. The rewards will contribute to the ETF's net asset value, benefiting shareholders.

Yesterday, Bitcoin spot ETFs saw $25.9M in inflows, all from non-GBTC funds, while GBTC recorded no flow.

" and a points campaign called Drops, where users can earn points—potentially leading to an airdrop—by engaging with Linera content on X. To join, sign up on 

, complete tasks like joining Discord and interacting on X, then enter the campaign. Keep engaging to earn more points, but avoid spamming.

Beginner

1.png

Hong Kong approves Ethereum ETF with staking rewards, boosting institutional participation

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

US president Donald Trump’s tariff policies are influencing both crypto and US equities. Last week, BTC and the S&P 500 rallied due to a 90-day pause in reciprocal tariffs (excluding China). Equities are slightly below their April 9 highs, while BTC is holding above $83K. Its implied volatility term structure has normalized, and the volatility skew has improved from last week’s bias toward out-of-the-money puts, though it hasn't fully shifted toward calls.

Please check out the report’s highlights.

Tariff pause briefly brings back trading volume

Since our last report, open interest surged on Apr 9, 2025, as crypto spot prices rose after President Trump’s temporary tariff pause, accompanied by a nearly $10B increase in trade volumes. However, trade volumes have since returned to mid-March levels, and open interest has declined from the April 9 highs. The initial price spike indicates the tariff pause surprised the markets, but the subsequent pullback reflects concerns over remaining tariffs.

After being inverted for much of April due to trade policy shocks and macro headwinds, BTC’s term structure has disinverted, with front-end volatility dropping significantly this week. Call and put volumes have been balanced, with calls slightly exceeding puts most days. Apr 9, 2025, reflected mixed market sentiment, as both call and put volumes rose, but puts were higher overall. Open interest remains greater in calls, and has increased slightly since last week, reaching its highest level for the month (more than double from the beginning of April).

Despite a rally on Apr 9, 2025 that brought ETH close to $1.7K, traders sought downside protection, leading to higher volumes in put contracts as compared to calls. Since then, ETHUSDT options volumes have declined, but open interest remains strongly weighted toward calls with later expirations, which have increased since last week. After being inverted for much of April, ETH’s term structure of volatility has flattened, with volatility compressing around the 70% mark across tenors.

Advanced

block-scholes-x-bybit-report.jpeg

Bybit X Block Scholes crypto derivatives analytics report (Apr 16, 2025): Bitcoin put bias has moderated, but not yet shifted to calls

KiloEx (KILO) is a user-friendly DEX for perpetuals trading, offering high leverage, rewards, LSTfi integration and a robust multi-chain ecosystem.

 trading is one of the most lucrative areas for cryptocurrency enthusiasts if you know how to navigate the sometimes complex world of these contracts. Unlike standard futures, perpetual futures contracts have no expiration date, allowing traders to hold onto their positions as long as they prefer. You only exit a crypto perpetual (or “perp”) contract when you feel it’s the best time to execute your long or short trade. The lack of an expiration period makes these contracts attractive for traders.

Unfortunately, many crypto perpetual contract trading platforms are far from user-friendly. It seems like many perpetual crypto exchanges assume that only professional traders dabble in these contracts, and along with that assumption goes a second one — that these pros can navigate even the most complex user interfaces. As a result, finding a user-friendly perps platform is a challenge in the world of crypto trading.

 (DEX) that aims to change the status quo by providing a user-friendly environment for traders. Its platform also offers high leverage ratios, integration into the wider liquid staking token finance (LSTfi) ecosystem and generous reward programs for referrers and affiliates.

Thanks to its numerous benefits, this DEX caters to the needs of traders at all levels of expertise who are interested in crypto perpetuals. Operational since mid-2023, KiloEx launched its native token, KILO, in March 2025 to further enhance its platform's reward, staking and governance mechanisms.

 (BNB) that specializes in crypto perpetual futures trading.

 The platform prides itself on offering a user-friendly interface, high 

 ratios of up to 100x, multi-token vaults with generous APYs and a number of reward programs for referrers and affiliates.

Co-founded by Joey Ni (CEO) and Charles Gong (COO), KiloEx was originally launched on BNB Chain's mainnet in June 2023. As of mid-April 2025, the platform has additionally expanded its service coverage to five 

 (B2). This coverage allows KiloEx to access the ecosystems of three leading blockchain platforms — 

Manta, Base and Taiko are Ethereum-focused Layer 2 solutions, while opBNB is an efficient and low-cost optimistic rollup for the BNB Chain, while B

 is a platform linked to Bitcoin that acts as a major Bitcoin DeFi (BTCFi) enabler.

Because it’s a BNB-native platform, KiloEx's industry footprint is most notable within this blockchain's broader ecosystem. In fact, as Apr 17, 2025, KiloEx is the top DEX on the opBNB network by 

Using Layer 2 chains allows KiloEx to offer its users fast and low-cost transactions, which isn't always possible on a typical Layer 1 network. It's true that BNB Chain, the primary Layer 1 used by KiloEx, generally has much lower gas fees than Ethereum, the industry's leading 

 chain that’s notorious for its exorbitant costs. However, KiloEx's partner Layer 2 networks help drive costs and transaction times even lower. BNB Chain's current average gas fee is slightly over $0.10, while the opBNB Layer 2 rollup's comparable fee is only about $0.005.

In 2024, the platform introduced one of its most innovative features — the 

, which allows liquidity providers to stake multiple assets to earn high yields. That same year, KiloEx significantly expanded its partnership network, becoming an active player in the LSTFi ecosystem. LSTFi is a new stream within the DeFi industry that allows you to use 

 (LSTs) on various protocols for additional yield.

Having solidified its market presence in 2024, the project launched its native token, KILO, in March 2025. However, in mid-April 2025, KiloEx 

 and halted trading on April 15 as a risk management measure, pending investigation of the damage.

The Hybrid Vault is among the most innovative features offered by KiloEx. Essentially, it acts similarly to liquidity pools on other exchanges. Liquidity providers can contribute their crypto funds to the vault to support trading activity on the DEX and earn interest on their contributions, based on the fees earned by the protocol.

You can contribute a mix of coins to a KiloEx vault. Supported assets include 

Depending upon trading activity and the mix of coins contributed, you can earn APYs as high as 30%, making KiloEx one of the most lucrative choices for liquidity providers in this niche.

KiloEx uses a health factor calculation for this type of vault to keep your funds and the entire ecosystem safe. Based on the health factor score of your contribution to the vault, your funds could be liquidated if their value drops dangerously low.

Discounts are also offered for fixed-term deposits for established assets, such as USDT and USDC. Withdrawals for the fixed deposits are processed upon maturity, while all other withdrawals are processed within one to three "epochs," with each epoch on the platform lasting about three days. Thus, depending upon your contributed funds, you’ll wait anywhere from three to nine days to receive your crypto back.

The KiloEx platform also runs a generous referral program under which you can earn rewards for referring your friends to the platform. The amount you earn depends upon the trading volumes generated by the people whom you’ve referred. Additionally, your referees to the DEX can also benefit from fee rebates, again depending upon the volume of trade they generate.

There’s a tiered system, comprising nine levels, based on which you and your friends earn commissions and rebates. Under this system, even those referred traders whose monthly volume is at the lowest level (below $5,000) can still benefit from 5% rebates, while you also earn a 10% commission.

The table below shows the structure of this referral system with percentages for commission and rebates based on monthly trading volumes.

KiloEx offers an affiliate program for key opinion leaders (KOLs) with a certain level of social media following and influence in the crypto market. KOLs may apply to join the program by filling out an application, which is then considered by the project team within 48 hours.

To qualify for affiliate status, a KOL must have: 

Approved affiliates are provided a link to the platform, and are encouraged to invite their followers to trade on the KiloEx. If they invite at least five followers who trade at sufficient levels, the affiliates can start earning their commission. KOLs can earn up to 55% commission, depending upon the referred followers' trading activity.

KiloEx’s native utility token, KILO, is a 

 asset launched on BNB Chain. It’s used on the platform for governance, fee discounts on trades, rewards via 

, liquidity provision incentives and staking.

KILO is a supply-capped asset, with a maximum and total supply of 1 billion. The token’s supply allocation shares are shown in the chart below.

xKILO is an escrowed version of the KILO token. You can convert KILO to xKILO at a fixed rate of 1:1. The primary utility of xKILO is to provide boosted liquidity provision, which makes it possible to receive staking rewards. By locking xKILO on the platform, you can access special discounts and other benefits reserved for VIP-level users. Holding xKILO also grants you governance power to vote and influence the platform's future direction.

Unlike KILO, xKILO is nontransferable and isn’t tradable on the secondary market. The only ways to obtain xKILO are either to buy it with KILO or receive it via airdrops.

Platform users can earn points to qualify for KILO airdrops. Typically, you accumulate points by trading, depositing funds, referring others to the DEX, checking in to the platform and completing other specified eligible activities.

The project’s initial airdrop, Genesis Season, had an eligibility snapshot taken back in July 2024. Under the currently running airdrop campaign, Pioneer Season, users can earn points to receive KILO tokens for 180 days past the token generation event (TGE) in late March 2025 (i.e., until late September 2025).

Additionally, you can earn KILO tokens on Bybit simply by participating in the 

 event and holding BNB in your account. Every day at various random times, Bybit will take snapshots of your BNB holdings in your Funding and Unified Trading Accounts to calculate the number of KILO tokens you’re eligible for. The campaign will run through Apr 25, 2025, 11:59PM UTC, and you’ll have your share of KILO airdropped seven days after this date.

 market as a swap pair with USDT. If you don't have a Bybit account, you can easily 

, and access opportunities across hundreds of trading pairs and crypto products on the exchange's Spot and Derivatives markets.

As of Apr 17, 2025, the KILO token is trading at $0.039, which is 76.2% lower than its ATH of $0.1648 on Mar 27, 2025, and 17.3% higher than its ATL of $0.03344 on Apr 12, 2025.

Long-term price forecasts for KILO are mostly bullish. CoinCodex 

 at $0.0387 in 2027 and then rise to $0.135 in 2030 while PricePredictions 

When it comes to perpetuals trading, both traditional 

 (CEXs) and DEXs have often struggled to offer an intuitive trading experience. In contrast, KiloEx has made user-friendliness a cornerstone of its operations. With KiloEx, you can enjoy a streamlined trading process, access market trends info for thorough research, get an overview of the cryptocurrency market and conduct other activities via an interface that’s designed for anyone, irrespective of their familiarity with decentralized trading.

The platform also boasts a diverse range of other benefits not easily found in the world of perpetuals-based cryptocurrency trading — generous leveraged trading options, trading fee discounts, lightning-fast trades, low trading fees and an innovative Hybrid Vault system. Many of these benefits are thanks to KiloEx's collaboration with several Layer 2 decentralized platforms, which provide the technical infrastructure to enable low costs and fast order processing.

If you’re a crypto perpetuals enthusiast, KiloEx is definitely a platform to peruse.

Intermediate

KiloEx.png

KiloEx (KILO): More than a DEX — a rewarding ecosystem

In this article, Bybit Learn breaks down how the RFC meme coin was launched by the 'ifindretard' community, what’s driving its popularity and how to trade the RFC meme coin on Bybit.  

RFC quickly became one of the most talked-about and actively traded meme coins in early April 2025. In this article, we’ll break down how the token started, what’s driving its popularity and show you how to trade RFC on Bybit.  

Meme coins have always relied on humor to capture a wide audience and RFC is no different. The coin is inspired by the 

 X account that posts right-leaning, political and social posts on the platform. The account quickly became popular and gained over 718,000 followers as of mid-April 2025. 

 the launch of RFC, a Solana-based meme coin with a core mission of becoming the definitive meme coin for their community. The project aims to counter the prevalence of rug pulls and scams and create a token that is fair and community-centric.

The RFC token was launched on Mar 24, 2025, on the 

 platform. Within a few hours of its launch, the token graduated from the bonding curve and was placed in the liquidity pool. The initial post from the @ifindretards account is likely the major cause of the parabolic rise in the price of the token on the pump.fun platform. 

In the following days, the popularity of RFC experienced a significant surge, largely fueled by an enthusiastic community that rallied around the project. The coin’s 

 on Solana and its allocation of 96% of the supply to the public attracted a lot of attention from the meme coin community. Such community-centric characteristics quickly boosted the coin’s profile. According to 

, over 216 KOLs have mentioned the coin, with 124 being bullish and only five being bearish. This positive momentum was soon reflected in the price surge of RFC.

Following the graduation from the bonding curve, the price momentum continued and the coin reached a peak market cap of around $8 million, but quickly retraced to $1.2 million the next day. Over the next few days, the coin consolidated in the $1 million to $5 million range. 

On Mar 31, 2025, the coin broke out of this range and witnessed a 2-week staggering rally that saw the market cap rise as high as $138 million on Apr 14, 2025. This is a 25x increase from the first day’s close of $5.5 million. The coin has since retraced slightly, and as of Apr 15, it’s currently trading at a valuation of around $91 million market cap. 

The total supply of RFC is fixed at 1 billion tokens. The distribution of these tokens is heavily weighted towards the public, with 96% allocated for a public fair launch. Notably, only 4% of the total supply was allocated to the developer wallet, and the project explicitly states that there were no airdrops or presales.

If you’re interested in riding the RFC wave, you can go long or short on the token with up to 20x leverage on Bybit through its 

 RFCUSDT perpetual contract. Whether you're bullish or bearish, you can dive into the action and start trading the 

Retard Finder Coin RFC.png

RFC: Trending meme coin with a strong community

Crypto

DeFi

web3

Curve Finance is a DEX primarily for users to swap tokens for stablecoins. Users can also provide liquidity to earn fees. Learn how it works.

Curve-Finance.jpg

 like Curve Finance. and Uniswap. Primarily a decentralized liquidity aggregator, Curve Finance allows users to swap tokens for stablecoins and to provide liquidity to the liquidity pools and earn fees.

On contrary to Uniswap, Curve Finance aims to provide users an alternative to swapping tokens faster, more direct, and at a cheaper rate. Instead of swapping token A for ETH, then ETH to token B, the use of Curve Finance eliminates the hefty transaction fees and processes swapping token A to B directly in a single transaction.

 is an Automated Market Maker (AMM)-based decentralized exchange (

. It’s focused on swapping between different stablecoins, and it features low fees and minimal slippage. Since AMMs work with a pricing algorithm instead of an order book, Curve Finance is also useful for swapping between tokens that remain in a similar price range, like different tokenized versions of Bitcoin such as 

As of June 2021, there are 39 active pools available for swapping between stablecoins and assets on the platform. However, these pools are subject to changes based on the market demand. Some of the stablecoins available include USDT, USDC, DAI, BUSD, TUSD and sUSD. One of the known stablecoin pools is 3CRV, which consists of DAI, USDT and 

Curve Finance also supports yield-bearing tokens like those from 

, with yUSD pools consisting of yDAI, yUSDT, yUSDC and yTUSD. Users that participate in this pool receive the swap/gas fees generated by the Curve pool, as well as the yield from the underlying yield-bearing tokens. 

There are pools within the platform in which liquidity providers receive a percentage of the exchange fees, while there are also lending pools that include separate DeFi protocols that offer a higher rate of interest to providers. Curve is moving toward decentralized governance by launching a Decentralized Autonomous Organization (

) in which the Curve DAO is controlled by the CRV token for voting rights.

 (AMM) is a type of decentralized exchange (DEX) protocol that depends on a mathematical formula for pricing assets. Instead of using an order book, assets are priced according to a pricing algorithm. This allows digital assets to be traded using liquidity pools, instead of having buyers and sellers.

Think of AMMs as peer-to-contract (P2C), in that there’s no need for counterparties since trades happen between users and contracts. Liquidity pools are actual shared funds made of digital tokens that are locked in smart contracts. Users supply liquidity pools with tokens, and the prices of the tokens in the pool are determined by a formula. Thus, by adjusting the formula, liquidity pools are optimized.

 becomes a liquidity provider by supplying tokens to an AMM’s liquidity pool. Liquidity providers earn a fee for providing tokens to the pool. This fee is paid by traders when interacting with the liquidity pool.

Assets are priced according to a formula which is designed for swaps in a similar range. Let’s say for example that 10 USDT should equal 10 USDC, which should equal 10 BUSD. If you convert 5 million dollars worth of USDT to USDC and then convert it to BUSD, there will be slippage. However, Curve’s formula aims to minimize this slippage, even when converting large amounts. 

In addition, the liquidity pools help to guarantee the lowest amount of slippage when exchanging digital currencies. By focusing on 

, Curve guarantees a lending protocol that is less volatile while still giving high interest on the liquidity provided.

The pools are controlled by the AMM, which rebalances pools after exchanges are made. For instance, let’s say that a pool contains USDC and TUSD. A trader at Curve Finance wants to sell USDC and uses this liquidity pool. The pool becomes unbalanced because there is now more USDC. In order to rebalance it, the price of USDC drops to encourage traders to buy USDC with TUSD. Arbitrage traders then buy TUSD with USDC. In this way, the liquidity pool rebalances the ratio of USDC to TUSD. The price incentive keeps the liquidity pools balanced.

Curve is known as an AMM exchange with low fees for traders, while also providing efficient fiat savings accounts for liquidity providers. By focusing on stablecoins, Curve allows investors to avoid volatile cryptoassets while still earning high-interest rates from lending protocols. At the same time, its model is considered conservative because it avoids volatility and speculation in favor of stability. Curve’s liquidity pools are permanently trying to buy low and sell high. 

 or Balancer, liquidity pools are made up of any token and volatility is high. By limiting the pools and the types of assets in each pool, Curve minimizes impermanent loss. This occurs when liquidity providers suffer a reduction in token value, relative to the market value of that token, from volatility in a liquidity pool.

Curve attracts liquidity providers using what’s called DeFi composability. This simply means that you can use what you’ve invested on Curve’s platform to earn rewards elsewhere in the DeFi ecosystem. Curve’s liquidity pools also contain tokenized versions of Bitcoin, such as wBTC and renBTC, which can be in the same pool, whereas wBTC and USDC cannot function together.

Since trading fees on Curve are lower than those on Uniswap, you can also earn rewards from outside of Curve with so-called interoperable tokens. Let’s say that DAI is lent out on 

, and then exchanged for a liquidity token called cDAI. Curve users can use cDAI in its liquidity pools, thus achieving another level of utility and potential earning.

The possibility of using Compound’s cTokens on Curve Finance demonstrates the composability benefits in the DeFi ecosystem. As mentioned before, Curve is also integrated with Yearn and 

 to maximize incentives for liquidity providers (LPs). Curve is unique for stablecoin trades because its liquidity and unique automated market maker attract high trading volume. Every trade earns a 0.04% trading fee paid to LPs. However, there are other ways (below) to profit from providing liquidity to Curve.

 Every trade conducted through the pools where you are a LP earns profits paid in proportion to your share of the pool. 

 Deposits in liquidity pools that aren’t utilized are deposited into other DeFi protocols to generate additional revenue.

 for stablecoin deposits on Curve are high because Curve also yields farms with pooled assets. 

 Locking CRV tokens converts them into veCRV, which is used to boost your deposit APY. 

 For additional liquidity, some pools offer incentives, such as high yields for LPs. Curve Finance is well-known for the 

 of stablecoins. As a liquidity provider, you can mix and match any of the income streams mentioned above to maximize your yields. 

CRV is Curve Finance’s native token. It is mainly used for governance, LP rewards, boosting yields (such as veCRV), and token burns. Since Curve is community-governed, its decisions are made by CRV holders who vote-lock their tokens to convert them into veCRV. Incidentally, veCRV stands for 

, meaning CRV that’s been locked into the Curve protocol for a defined time. The longer you lock CRV, the more veCRV you receive.

Keep in mind that veCRV holders earn profits from exchange fees. Curve’s protocol can be complex. Consequently, veCRV adoption is low, but increasing as yield farmers begin to understand its potential. 

Liquidity pool rewards and incentives are paid in CRV to LPs based on the size of their poolshare. Because not all trading fees are redirected to LPs, a small portion is collected and used to buy and burn CRV, reducing CRV supply.

The CRV token can be bought as well as earned through yield farming when you deposit assets into a liquidity pool and earn tokens as a reward. By providing DAI to a designated Curve liquidity pool, you can also earn CRV tokens on top of fees and interest. Yield farming the CRV token increases the incentive to become a Curve liquidity provider because you gain a financial asset and ownership of a DeFi protocol.

Curve Finance vs. Uniswap: The Differences 

The main difference between the two is that on Uniswap you can swap any ERC-20 token, whereas Curve is specifically for trading stablecoins on Ethereum. Curve is an AMM platform with many similarities to Uniswap. However, Curve differentiates itself by only accommodating liquidity pools made up of similarly behaving assets. These can be stablecoins or wrapped versions of similar assets, such as wBTC and tBTC. This allows Curve to use efficient algorithms and to display the lowest levels of fees, slippage, and impermanent loss of any decentralized exchange (DEX) on Ethereum.

Uniswap is ranked below Curve Finance in terms of TVL (Total Value Locked), which is an estimate of the potential of a DeFi yield farming platform. This indicator tells you the amount of digital currency locked and serves as a health measure for the DeFi ecosystems and yield farming market.

, Curve now has nearly $7.5 billion worth of liquidity locked in, while Uniswap has only $6 billion. The reason Curve keeps adding TVL is its focus on swapping stablecoins, a niche with less competition. Being a purpose-built market also means that Curve offers advantages to both traders and liquidity providers:

 Whale traders and high-volume trading pairs are subject to slippage, but Curve’s similar asset pools minimize it. 

 Liquidity providers on Curve supply stablecoin pairs that nearly eliminate impermanent loss.

Uniswap trades against ETH. In order to accomplish as direct a trade as possible, you need to either trade using ETH, or trade for ETH. If you trade from USDT to USDC, Uniswap turns your USDT into ETH, then trades ETH for USDC. Your swap then requires two trades, making it more expensive. Obviously, trading stablecoins on Curve is cheaper because Curve doesn’t require ETH as a base pair for trades. 

When the cryptocurrency market dips, Curve retains TVL, whereas other exchanges lose theirs. This is due to the way Curve protects liquidity providers from impermanent loss. Impermanent losses are LP profits lost when crypto price volatility unfavorably rebalances the pair assets. Since all liquidity pools require you to deposit a pair of assets, the risk increases when one of them rises or falls faster than the other. Ideally speaking, you should maintain an even 50/50 value balanced between your pooled assets.

Curve uses stable pools to walk around the impermanent loss problem. All Curve pools are either 1:1 stablecoin pools (i.e., USDT/DAI) or 1:1 synthetic token/token pools (i.e., sETH/ETH). In keeping liquidity pool pairs restricted to assets that reflect one another in value, the impermanent loss is not an issue. This makes Curve a safe haven for liquidity providers.

Overall, Curve is better than Uniswap for trading stablecoins, and it’s also a safer place to place your stablecoins, ETH and wrapped Bitcoin for steady yield income.

It should be noted that Curve Finance and other DeFi protocols are currently in the experimental phase, and are thus works in progress. Funds deposited into Curve Finance or other DeFi protocols are at risk of smart contract vulnerabilities, malicious developers, and hacks. Risks are always present with digital currencies. Evaluate these risks before entering into a new protocol or purchasing any cryptocurrency. As always, only invest what you are willing to lose. Although Curve Finance has been 

, the protocol is not exempt from risk or failure.

Curve Finance is mainly built on stablecoin pools, and stablecoins are pegged to an underlying asset. If a peg fails on a stablecoin, resulting in falling prices, liquidity providers of that pool will only hold the unpegged stablecoins. Curve supplies liquidity to other partners such as yearn.finance and Compound.

This practice, known as composability, achieves higher returns for liquidity providers. However, with this interaction comes a risk of chain collapse. Any problem with a connected DeFi protocol or partner could result in damage to Curve Finance.

Curve is one of the most popular platforms on DeFi because it favors stability and composability over volatility and speculation. However, their best reason to stay is that there is no other DeFi protocol that is so deeply interconnected with the entire DeFi ecosystem as Curve. Ethereum-based DeFi apps and protocols which are able to natively plug and play with each other are called money legos. Like these money legos, Curve and other DeFi protocols connect with each other to build financial structures so that the whole is greater than the sum of its parts. 

DeFi applications like Yearn, Compound, 

 all use Curve pools. The volume of liquidity coming into Curve from these sources drives Curve’s overall TVL and puts pressure on the CRV 

For instance, as part of their automated farming strategy, Yearn offers high-APY stablecoin vaults that deposit tokens into CRV pools. To increase returns to vault holders, Yearn buys CRV and automatically escrow-locks it into veCRV for a maximum of four years to gain an APY boost. Indeed, CRV tokenomics appear to have been created with a higher level of perfection. A nexus of incentives and rewards around stablecoin pool yields turn protocols like Synthetix into CRV holders, along with retail farmers looking for the best yields for stablecoin deposits.

What Is Curve Finance and Liquidity Pool in DeFi?

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Weekly Leaderboard