What is Curve DAO?

Curve DAO is an Automated Market Maker (AMM) based Decentralized Exchange (DEX) founded to facilitate swaps between assets that are intended to have identical values. It primarily serves the DeFi ecosystem by allowing users to trade wrapped and synthetic tokens that mirror the price of their underlying assets. A notable pool is 3CRV, which consists of stablecoins DAI, USDT, and USDC, with market supply and demand influencing the asset ratios.

In addition to standard asset swaps, Curve supports yield-bearing tokens through collaborations such as with Yearn Finance to create yUSD pools. These pools incorporate yield-bearing tokens like yDAI, yUSDT, yUSDC, and yTUSD, providing participants with multiple income sources: yields from the tokens, swap fees from the pool, and yield farming rewards in CRV tokens.