Curvefi is a decentralized exchange protocol designed specifically for trading stablecoins. It aims to provide low slippage and low fees for stablecoin swaps by leveraging different liquidity pools. Curvefi was founded by Michael Egorov and is operated by Curve Labs. It was launched in 2020 and its name is derived from the mathematical concept of a curve in finance.
Curve.fi is a decentralized exchange (DEX) and automated market maker (AMM) protocol built on the Ethereum blockchain. It offers several benefits compared to its direct competitors in the DEX space.
One of the key benefits of using Curve.fi is its focus on stablecoin trading. Unlike other DEX platforms that support various cryptocurrencies, Curve.fi specifically caters to stablecoin swaps. This specialization allows for lower slippage and better liquidity for stablecoin pairs such as USDT, USDC, and DAI.
Another advantage of Curve.fi is its efficient and cost-effective trading experience. The protocol utilizes a unique algorithm that is specifically designed for stablecoin pools, resulting in lower fees and reduced price volatility. This makes it particularly attractive for traders who want to avoid excessive costs and price fluctuations when trading stablecoins.
Additionally, Curve.fi boasts a strong community and user base. With its focus on stablecoin trading, it has gained popularity among yield farmers, liquidity providers, and DeFi enthusiasts. The protocol also offers generous incentives and rewards for users who provide liquidity to its pools.
When comparing it to its direct competitors like Uniswap and Balancer, Curve.fi stands out for its specialization in stablecoin trading and its distinct algorithm that optimizes for low slippage and minimal price impact. However, it is worth noting that each platform has its own unique features and target users, so it is advisable for traders to consider their specific needs and preferences when choosing a DEX.
In summary, the benefits of using Curve.fi include its focus on stablecoin trading, low fees, reduced price volatility, and a strong community of users. These qualities position Curve.fi as a compelling option for traders and liquidity providers in the decentralized exchange market.
Curve.fi is a decentralized finance (DeFi) protocol that operates on the Ethereum blockchain. It is designed to provide efficient and low-slippage trading for stablecoins and other similar assets. The underlying technology behind Curve.fi is an automated market maker (AMM) algorithm called Constant Product Market Maker (CPMM).
The CPMM algorithm allows users to trade between different stablecoins with minimal slippage. Users can deposit their stablecoins into the Curve.fi liquidity pools, which are responsible for facilitating the trades. These liquidity pools are composed of various stablecoins, such as USDT, USDC, DAI, and others.
When a user wants to trade one stablecoin for another, the CPMM algorithm ensures that the ratio between the stablecoins remains constant. This helps to minimize price slippage, allowing users to trade stablecoins at fair and predictable prices.
To maintain the stability of the pools, Curve.fi relies on a concept called "liquidity gauges." These gauges measure the amount of liquidity provided by users and distribute rewards accordingly. By providing liquidity to the Curve.fi pools, users can earn fees and additional incentives.
Overall, Curve.fi offers a seamless and efficient way to trade stablecoins with low slippage. It leverages the power of AMM algorithms and liquidity pools to ensure fair and predictable trading experiences for its users.
DIA takes a comprehensive approach to fetching trade data from different types of exchanges in the DeFi and NFT ecosystem. The process varies depending on the type of exchange involved.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes scrapers to directly collect trades from exchange databases. This is done using Rest APIs or WebSocket APIs. The frequency of data collection can range from 1 to 7 seconds, depending on the specific exchange.
In the case of decentralized exchanges, DIA retrieves data from various blockchains by subscribing to swap events in liquidity pools. This allows DIA to obtain trading data directly from the blockchain itself, ensuring high data accuracy. Examples of decentralized exchange sources include Uniswap, curve.finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data by closely monitoring the smart contracts of integrated marketplaces. The retrieval period for NFT data typically ranges from 20 seconds to 1 minute, ensuring real-time coverage of all NFT transactions. By focusing on the smart contracts, DIA can provide accurate data without relying on potentially unreliable bids and offer data. Notable NFT integrated exchange sources include Blur, X2Y2, OpenSea, and TofuNFT.
DIA's comprehensive data management strategy, which leverages both centralized and decentralized data sources, enables them to provide highly accurate and customizable price feeds for various blockchain applications.
DIA uses a systematic process to compute trade data from Curvefi and build price feed oracles. The process differs based on the type of exchange we are referring to: DeFi or NFT.
For DeFi exchanges, DIA follows two steps. First, they clean and detect outliers in the data to ensure the price estimation is resilient against irregular trades. They achieve this by applying an Interquartile Range (IR) filter, which excludes data points and sets that lie outside an acceptable range relative to the interquartile range. This helps eliminate trades with prices diverting from the market price due to market manipulation, errors, or flash crashes.
Next, DIA applies price determination methodologies to calculate the final price from the remaining data points. They offer various filters to cater to different data needs. One example is the Volume Weighted Average Price (VWAP), which takes into account trade volumes to determine the price. Another example is the Moving Average with Interquartile Range Filter (MAIR), where trades within a time range are ordered by timestamp and a weighted average price is calculated.
For NFT exchanges, DIA computes the floor price of an NFT collection using a two-step process. Firstly, the on-chain trade data is processed through cleansing filters to exclude outliers and manipulation techniques. Secondly, a pricing methodology is applied to determine the final price point. DIA offers methodologies like the Floor Price, which provides the lowest sale price of an NFT collection during a given time window. They also provide more advanced methodologies like the Moving Average of Floor Price, which returns the moving average of a collection's floor price to produce more realistic and reliable NFT floor prices.
It is important to note that DIA's methodologies aim to minimize the impact of market manipulation techniques like wash trading and sweeping the floor, ensuring the integrity of the price feed data.
Overall, DIA's process of computing trade data from Curvefi involves cleaning and outlier detection, and the application of specific price determination methodologies tailored to the type of exchange being considered.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.