Is Curve Finance a scam? Report and review 2022

If you are interested in the world of cryptocurrencies, we encourage you to find out what Curve Finance is.

In this article, we are going to let you know what Curve Finance is along with some information for your interest.

What is Curve Finance?

Curve Finance is a DeFi universe protocol designed to be able to trade stablecoins with very low fees and slippage.

Basically, in Curve Finance you will find a protocol that performs operations like the ones you can find in Uniswap, with the exception that Curve Finance focuses on assets that have a 1:1 parity with national currencies.

It is precisely for this reason that Curve Finance is loved by many traders and also because of the ability to trade different tokenized versions of a coin.

To give an example, Curve is considered one of the best DeFi protocols with which different tokenized versions of Bitcoin can be traded. Moreover, thanks to its simple interface, users of the protocol can trade these currency pairs quickly and easily.

Origin and history

Curve Finance is relatively young. Its debut dates back to November 10, 2019, being its creator Michael Egorov.

Curve Finance was originally called StableSwap and was designed to be able to provide services DeFi for stablecoins, all within an autonomous market maker. The main feature it was created with and maintains today is minimum price slippage. In this way, it was intended to become a sort of fiduciary savings account, especially useful for these liquidity providers.

Egorov designed this system to offer a medium of exchange that could bridge centralized and decentralized stablecoins. Thanks to the exchange that would exist between the two, the market would develop easily.

Is Curve Finance safe?

Curve Finance is a protocol belonging to DeFi, i.e. the most innovative and therefore the least regulated sector of the entire financial sector.

This is why Curve is a company that still has no official regulation in any official body.

Its security comes from the operation of the platform and from "word of mouth", that is, from the prestige it obtains from its users, who will post possible problems in the forums of the network.

It's not just a Curve Finance thing, but the whole industry, so to see if this company is safe or not, we'll have to see how its online opinion profile is doing.

We cannot expect any official financial body to come up with regulations soon. It is still early for these measures to be taken in the Defi world.

Does this mean Curve Finance is not safe?

It doesn't have to be like that. Curve Finance is a platform which for the moment is quite secure and whose security will depend on how you know how to save your passwords.

Being a platform that does not have custody of the cryptocurrencies, the security will depend on you, since these will always be under your power and that of your particular wallet, whether it is MetaMask or Ledger.

Some aspects of Curve Finance security are:

• Audits by Trail of Bits. On the same website it is stated that this also does not mean that the system is completely safe.
• Admin keys
• When you do Staking (deposit of crypto-currencies), each presents different risks

Is Curve Finance a scam?

Unfortunately, in the world of cryptocurrencies, there are many scams. When a market appears that promises a lot of returns to its users, the first thing we have to do is beware.

In this case, we can say that Curve Finance is not a scam.

Although it is not a regulated platform, that does not mean that it has to be a scam. He thinks the whole DeFi industry is like that, and that doesn't mean their companies are acting fraudulently despite not having those regulations.

On the other hand, it is also possible to find scams on regulated platforms, although it is less likely, but it is still possible.

We recommend that you try to ask the opinion of other users about it and also pay attention to its security protocols.

How to Open a Curve Finance Account

Curve Finance doesn't work like other more informal platforms you may be used to. In Curve Finance you will not have a user account or password, but what you will have to do when you enter is access with a wallet.

Curve Finance allows you to connect to several different wallets such as Dappradar, Trezor, Ledger, Fortmatic, Portis, Torus or Lattice among others. When you choose your wallet and click on it, a link will open where you will have to identify yourself so that, obviously, you log in with your wallet.

Deposit Methods

When it comes to their deposit methods, it's important to note that Curve Finance does not accept fiat currency deposits like the vast majority of DEXs.

The fact that it does not have the possibility of making a deposit implies that you will not be able to operate on the platform if you did not previously have cryptocurrencies. However, this is not a problem, because what you can do is find an exchanger of currency deposits for cryptocurrencies, as if you were buying them.

With these cryptocurrencies already in your wallet, this will be the time when you can operate. Basically, you will log in as we have seen before, connecting your own wallet in the Curve Finance page and you can start making all the changes you prefer.

In Curve Finance, you don't buy cryptocurrencies, you already have to change them.

How Curve Finance works

Understanding how Curve Finance works is not entirely easy. Basically, we can understand this platform as a decentralized Exchange exchanger.

However, behind these concepts there are others that are the essence of Curve Finance, such as liquidity pools. These pools are the ones that provide us with the necessary liquidity to be able to trade stablecoins.

Liquidity pools are spaces controlled by a smart contract where a large number of assets are amassed. These assets are injected by liquidity providers with the aim of obtaining profits from the loans they grant. In this way, each loan or small exchange offers a commission to these providers with which they manage to increase their profits. Basically, this is the concept that Curve Finance pursues and with which you can get money.

The main difference with other platforms is that while they work with more volatile assets, Curve Finance does so with the most stable currencies.

Since stablecoins are used, it is important to make a high number of transactions and it is always convenient to watch the exchange rate.

Unlike volatile currencies, it is not so easy to find a big difference between prices here, so any change, no matter how small, is highly appreciated. Essentially, the more trades, the more dynamic the market and the greater the profit (or loss).

On top of that, Curve Finance integrates seamlessly with other platforms, thus being part of a more secondary exchange from which higher profits can be earned.

CRV token and crypto

The CRV token is the native cryptocurrency of Curve Finance. The main purpose of this token is to encourage users to inject liquidity into Curve Finance itself since as we have seen this is how it has to make it work perfectly by getting more users .

The holders of these CRV tokens have different advantages, such as being able to vote on DAO proposals and also on the parameters of the pool, having their CRVs blocked in exchange for receiving veCRV tokens. These latter tokens are valid for voting on different proposals.

Similarly, the CRV token can be blocked in order to obtain the trading commissions that prevail under the Curve protocol. Everyone who provides liquidity to Curve will increase their liquidity by voting to lock their own CRV token. The longer you lock this token, the more your rewards will increase.

Curve Finance trading and commissions

Trading Stablecoins is a safer trade than trading more volatile currencies, precisely because of the smaller difference in the variations of their value. Despite the fact that these other more volatile markets are enjoyed by many commercial users, it is a fact that thanks to Curve Finance, more and more users are part of this market which is at the forefront of its own sector.

Centralized markets usually have fees, both for the taker and the maker. By taker, we mean the people who find themselves with the liquidity of the portfolios by accepting the orders placed and it is the manufacturers or market makers who execute the said orders.

Unlike centralized sites, in the vast majority of decentralized sites, there is no type of fee. In this case, we can say that Curve Finance does not charge any kind of fees either.

On the other hand, Curve Finance does not charge any type of transfer or withdrawal fees, with the exception of those on the network. These network fees are those paid to the miners themselves for being part of the chain, but they are not paid what the exchange itself would be.

The value of these network charges can also vary depending on the pressure on the network at the time, so they can be completely different from day to day depending on the state of the network.

Conclusion – Our opinions on Curve Finance

This is a special project with particular popularity in certain sectors of the DeFi market.

It is not a very common project and therefore not suitable for most traders who are generally looking for more typical products such as typical trading with BTC or ETH pairs.

This feature of being such a specific site makes it unsuitable for most traders i.e. you need to know what you are doing when entering this product.

A point in favor of the site is that it has relatively cheap commissions or rather running costs, especially compared to other competitors.

If you want more information, visit the Website.