Curve DAO (CRV)

The protocol uses automated market maker pools with pricing curves tailored to assets that should trade close to parity. This design helps traders swap between tokens such as dollar stablecoins or different representations of the same underlying asset with lower price impact than many general-purpose exchanges. Curve’s pools also create opportunities for arbitrage when pool balances move away from their expected ratios, helping pull prices back toward their intended levels.

Liquidity providers deposit assets into Curve pools and can earn a share of trading fees. Many pools are also connected to broader DeFi yield strategies, including integrations with lending markets, liquid staking protocols, and yield aggregators. In some cases, returns may come from the underlying assets, pool fees, and CRV-denominated incentives.

CRV plays a central role in protocol governance and liquidity direction. Token holders can lock CRV to receive vote-escrowed CRV, commonly known as veCRV, which is used to vote on pool incentives and participate in governance decisions. This system has made Curve an important liquidity layer across decentralised finance, particularly for stable-value assets where market depth, peg stability, and capital efficiency matter.