Curve Finance is beginning to show interest in the Polkadot blockchain, as a viable alternative to Ethereum and its high commission costs and Gas fees, so, in a joint development with Equilibrium, they have decided to implement the Curve algorithm on the parachain of Equilibrium.
CurveFinance is making its way towards Polkadot, the net blockchain of interoperability that was born to compete with Ethereum and its high costs. Curve Finance's vision, if implemented on Polkadot, will allow the DeFi liquidity protocol to exist on both the Ethereum network and the Polkadot network, offering an alternative for users and investors when fees on Ethereum are at levels astronomical. As reported by Curve Finance CEO Michael Egorov, commission fees for the Curve Finance protocol on the Polkadot blockchain will be kept as low as possible.
The integration of Curve Finance into the Polkadot ecosystem will be done through the Equilibrium parachain, as reported by the developers in a release recent. The team expressed that the implementation of Curve Finance's automated marketplace (AMM) on Equilibrium's Polkadot parachain will present a new opportunity for users to try out this new technology.
Thus, the Equilibrium and Curve Finance teams will collaborate to bring a Substrate-based runtime version of Curve's automated market maker (AMM) to Equilibrium users and the Polkadot ecosystem.
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Equilibrium, appetite for liquidity in stablecoins
The integration of Curve Finance into Polkadot responds to the plans of Equilibrium, the EOS-based decentralized finance (DeFi) platform seeking interoperability on Polkadot. In August of last year, Equilibrium announced its plans to be the first interoperable DeFi environment to facilitate, among many things, the creation and commercialization of a new stablecoin interoperable, and in allowing the management of generalized loans with any digital asset, in a similar way to what happens in protocols such as Compound and Aave.
In this regard, Egorov highlighted that “deep liquidity” is vital to drive the adoption of new applications like Equilibrium, as well as to drive the adoption of new blockchain networks. Therefore, the integration of a liquidity protocol such as Curve Finance will complement the creation of a DeFi platform that allows the exchange of Polkadot-based stablecoins on the Equilibrium parachain, in addition to other digital assets, such as “wrapped” cryptocurrencies. Wrapped Bitcoin (wBTC) y Ren Bitcoin (rBTC).
Curve Finance developers noted that the integration of Curve Finance and Equilibrium is in development thanks to a grant awarded by the Web3 Foundation Open Grants Program, and that once it is completed, liquidity providers on Curve will enjoy income liabilities generated in a low-slip environment.
On track to be the number one staking blockchain
This year, Polkadot plans to become the leading staking blockchain in the market, according to objectives that the network developers drew up at the end of 2020. On the other hand, Egorov, the CEO of Curve Finance, highlighted that the growing demand for liquidity from stablecoins in protocols like Curve Finance, is what is driving the expansion of technology towards other blockchains, much more interoperable and economical.
Ethereum is the leading blockchain for the development of decentralized applications (dApps), smart contracts, protocols DeFi and many more. However, its high Gas costs, and therefore, the high costs of transaction commission fees that must be paid to interact with projects and applications, make this network inaccessible for many common users. In fact, Ethereum fees, which are around $24 USD Currently, they are leaving the network in the hands of companies and corporations, which are the ones who can assume the high commission costs that the network requires to interact with their projects and applications.
At the time of writing, Curve Finance has a Total liquidity of $3.890 billion, according to data from DappRadar.
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