Curve Finance is on its way to Equilibrium’s Parachain on Polkadot
We’re on our way to unveiling “Uniswap for stablecoins” on our parachain.
Equilibrium will collaborate with Curve Finance to bring a Substrate-based runtime version of Curve’s automated market maker (AMM) to Equilibrium’s users and to the Polkadot ecosystem.
This is a collaboration in which Curve will supervise business logic implementation and fully support the development process for getting its AMM integrated with Equilibrium. The finished result will see Curve’s AMM implemented as a lightweight exchange module on Rust and running on Equilibrium’s Polkadot parachain.
A grant from the Web3 Foundation’s Open Grant Program is adding momentum to this pending integration while the Curve and Equilibrium teams take lead on making it a reality. Here’s what you can expect.
Automated market makers deliver value for all
Once complete, our Curve plugin will power a stablecoin exchange offering passive income for liquidity providers in a low-slippage environment. It will also become a highly efficient tool for exchanging homogeneous assets on Polkadot, whether they are DOT-based or different tokenized versions of the same asset, like Bitcoin’s WBTC and renBTC.
The initial liquidity on Polkadot will be limited, but Curve’s market-making algorithms can accurately minimize slippage in the trading of similar assets. This can translate into a significantly better spread on exchanges for the same total value locked, benefitting liquidity
providers and traders alike. As Equilibrium is the premiere Polkadot-based cross-chain money market to integrate Curve functionality into its interface, users stand to benefit significantly from access to this technology.
Unlocking deep liquidity by design
With low slippage and minimal costs, Curve is one of the most popular AMMs on Ethereum. It is a decentralized liquidity aggregator that lets anyone become a market maker, add their assets to several different liquidity pools, and earn fees for it. It is specifically designed for swapping between stablecoins and different tokenized versions of a coin, and it processes around $2.8 billion in trades monthly.
Open Grant Program
This initiative has support from the Open Grant Program, which is delivered by the Web3 Foundation. The grant has been approved by three authorized reviewers and has a six-week development roadmap. The roadmap consists of two main milestones:
- Initial implementation of Initial pools and invariant calculations
- Development of the asset exchange
The Open Grant Program funds development teams that are building the foundation of the decentralized web. The Web3 Foundation was established in Zug, Switzerland by Ethereum co-founder and former chief technology officer Dr. Gavin Wood. Polkadot is the Foundation’s flagship project.