Diversifying into gold, forex and other assets through Bybit Gold&FX helps crypto traders manage risk and stabilize their portfolios amid market volatility.

Navigating financial markets can feel like riding a roller coaster, with sharp twists and turns driven by economic events, inflation and global uncertainty. While crypto offers exciting opportunities, its volatility can be overwhelming. That’s why savvy traders look beyond digital assets, incorporating gold and forex into their strategies to create a more balanced portfolio. 

 makes this approach easier, giving traders the chance to diversify their portfolios into gold, commodities and forex. At the same time, Bybit Copy Trading Gold&FX allows traders to tap into expert strategies and advanced tools to 

 and capitalize on macro trends. This handy guide explores three simple steps to embrace macro volatility with Bybit Gold&FX so you can build a more resilient trading approach.

Volatility is a measure of how much asset prices fluctuate over time, indicating the level of uncertainty in financial markets. Higher volatility means bigger price swings, while lower volatility suggests more stability.

Why crypto traders should pay attention to gold, stocks and forex

, with prices often fluctuating dramatically and creating potential risks for investors. To 

, many crypto traders look toward diversifying their portfolios by incorporating traditional assets, such as gold, stocks and foreign exchange (forex), etc. Let’s look at why this matters.

Gold has long been viewed as a hedge against economic uncertainty, inflation and currency devaluation. Unlike crypto, which can experience extreme price swings due to factors like sentiment-driven movements or regulatory shifts, gold tends to retain or even grow in value during economic downturns. 

In April 2025, gold reached a historic milestone, hitting an 

. This rally was largely driven by geopolitical tensions, including renewed trade tariffs and Middle East instability, as well as expectations of interest rate cuts by the US Federal Reserve. During times of global stress, investors often shift capital into gold to preserve wealth — a pattern that has repeated strongly this year. 

For crypto traders, gold presents a way to counterbalance the volatility of digital assets. When crypto markets dip due to regulatory news or macroeconomic shocks, gold may provide stability and a steady store of value.

Equities remain one of the most established investment classes for long-term capital growth and dividend income. In contrast to many cryptocurrencies, which are highly speculative in nature, blue chip stocks and broad indices offer relatively stable returns and are influenced by business fundamentals and macroeconomic trends.

In early 2025, Chinese stocks posted an impressive comeback, with the 

. This growth was fueled by China’s economic stimulus measures, investor-friendly reforms and optimism around industrial recovery. Sectors like electric vehicles, technology and infrastructure saw particularly strong inflows.

For crypto traders, exposure to stocks can provide a more predictable and income-generating component to their portfolio — which is especially useful during periods when the crypto market is consolidating or correcting.

The forex market is the largest and most liquid market in the world, with over $7 trillion traded daily. Unlike crypto, forex operates 24/5 (instead of 24/7), and is deeply influenced by macroeconomic policies, interest rates and geopolitical developments.

In 2025, one standout example of forex movement came from the South African rand, which 

 as gold surged past the $3,000 mark. Since South Africa is a major gold exporter, the rise in gold prices naturally supported South Africa’s local currency. This is a clear example of how commodities, national economies and forex are closely linked, offering savvy traders multiple angles for profit.

For crypto traders, forex offers the opportunity to diversify into another high-liquidity market with its own rhythm and drivers. It’s especially attractive for those looking to apply 

 across different assets or hedge macro exposure.

Platforms like Bybit provide features that make it easier for traders to add traditional assets into their portfolios. Bybit Gold&FX, for example, allows users to access gold and forex markets alongside their crypto holdings, helping them create more diversified and sturdy investment strategies. This integration gives traders the flexibility to take advantage of diverse market conditions — so they can better manage their risk.

 offers traders a powerful and versatile platform to access a wide range of global markets — from crypto and forex to CFDs on commodities and 

Built for both beginning and more seasoned traders, Bybit Gold&FX comes packed with over 90 technical indicators, customizable charting tools and support for automated strategies through Expert Advisors (EAs). Its robust order management system ensures flexibility and precision, making it ideal for executing complex trading strategies in real time.

Investors and traders who prefer a more laid-back approach can consider 

 instead, a copy trading feature on the Bybit platform that allows users to replicate expert strategies in 

 (MT5). It offers a way to diversify portfolios with traditional assets by leveraging the expertise of advanced traders, helping reduce risks tied to crypto market volatility.

How to embrace macro volatility with Bybit Gold&FX

Managing macroeconomic volatility with Bybit Gold&FX requires a thoughtful and strategic approach. The following short description will show you how traders can embrace this volatility and play the macro game in three simple steps.

Understand the broader economic forces that drive market movements, including inflation rates, central bank policies and geopolitical events. Keep an eye on key developments, such as 

 (FOMC) meetings and Federal Reserve speeches, as well as factors like political instability and trade wars that can have an impact on global markets. 

 in early 2020. As uncertainty began to spread, gold prices surged because investors saw it as a safe-haven asset. Studies found a strong link between rising global COVID-19 cases and increased gold prices, with the pandemic contributing to significantly more volatile gold returns.

Bybit offers insights into macro trends and volatility, helping traders make fact-based decisions. Tools such as

 can provide a clearer picture of current market conditions and potential shifts, allowing traders to adjust their strategies with confidence.

Diversify your portfolio with a mix of assets on Bybit Gold&FX, including gold, forex and contracts for difference (CFDs) in order to navigate market fluctuations more effectively. As a traditional safe-haven asset, gold can help hedge against crypto volatility, inflation and currency devaluation. 

Forex pairs like EUR/USD or USD/JPY offer opportunities to capitalize on global economic trends, while commodities like oil and silver add another layer of diversification. 

 allows traders to amplify potential gains in these markets without directly owning the underlying assets. However, CFD trading and leverage carry significant risks, as they can amplify both gains and losses that potentially exceed your initial deposit.

Historically, cryptocurrencies like Bitcoin have shown 

 with traditional assets like gold and stocks, meaning their relative price movements don’t always align. This weak correlation suggests that adding traditional assets to your portfolio can help offset potential losses in the crypto market.

To track these relationships, traders can use tools such as correlation matrices. In addition, platforms such as Chainalytics Labs provide 

 that map out connections between major blockchains, gold, silver and 

, an open-source tool that helps visualize the relationship between cryptocurrencies and other financial assets.

Step 3: Execute trades efficiently on Bybit Gold&FX

Bybit Gold&FX gives you direct access to global markets — all with your USDT, no fiat conversion required. As the only crypto exchange offering this unique product, Bybit Gold&FX offers fast execution, advanced charting capabilities and customizable trading strategies, enabling traders to analyze markets effectively and respond swiftly to price movements. This is especially helpful for traders looking to act on major news — such as gold’s recent all-time high of $3,167.

 and create your MT5 account, then proceed to download the MT5 platform and fund your account to start trading.

When you’re ready to start using Bybit Copy Trading Gold&FX, head to the 

 tab. Once you've selected a trader whose strategy aligns with your goals, configure your settings to 

. From there, you can automatically copy their trades and gain exposure to gold, forex and CFD markets with ease.

Bybit Gold&FX provides crypto traders with a powerful way to navigate market volatility by diversifying into gold, forex and other traditional assets. By understanding macro trends, strategically positioning across multiple asset classes and leveraging Bybit’s advanced trading tools, traders can build more resilient portfolios. 

Diversification helps you reduce risk, stabilize returns and take advantage of opportunities beyond the crypto market. Whether through Bybit Gold&FX’s advanced features or Copy Trading Gold&FX, Bybit empowers traders to adapt and thrive in uncertain market conditions. In the dynamic financial market, embracing a well-rounded investment strategy is key to long-term success.

Intermediate

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3 easy steps to embrace macro volatility with Bybit Gold&FX

Particle Network is a Layer 1 blockchain powering chain abstraction that unifies users and liquidity across all blockchains through Universal Accounts.

 world remains divided by invisible walls that force users to manage multiple wallets and navigate complex 

 processes. Particle Network aims to tear down these barriers through chain abstraction, creating a unified 

 experience whereby users interact with any blockchain through a single account.

This article examines Particle Network's vision for chain abstraction, its Universal Accounts technology and the PARTI token, which powers this ecosystem. We'll also analyze the project's history, technical infrastructure and market position to evaluate its potential as both technological innovation and potential investment opportunity.

 powering chain abstraction. It unifies users and liquidity across all blockchains through Universal Accounts, which provide a single address and combined balance for interacting seamlessly with any chain or 

Founded in 2022, Particle Network initially focused on wallet abstraction services, allowing users to create wallets linked to their Web 2.0 social accounts. This foundational approach evolved into Particle Network’s current comprehensive chain abstraction technology, which aims to bridge the divide between traditional internet experiences and the decentralized world.

Co-founders Pengyu Wang and Tao Pan launched Particle Network in April 2022 with a vision born from their mobile gaming experience. They recognized that blockchain adoption was hindered primarily by poor user experience, and so they set out to build back-end infrastructure that would make web3 as intuitive as traditional applications.

The project quickly secured $25 million from notable investors, including Spartan Group, Animoca Ventures and Alibaba Group. This backing accelerated Particle Network’s development, allowing it to serve over 30 million wallets and integrate with more than 7,000 

The project has demonstrated rapid progress, evolving from a wallet abstraction service to a comprehensive account abstraction provider — and now, to a full-fledged chain abstraction layer. This progression demonstrates the team's agility and commitment to systematically eliminating the barriers between users and web3's potential.

What does Particle Network aim to achieve?

Particle Network aims to solve the three most critical barriers preventing web3 mass adoption. The first challenge is fragmented user experience (UX). Today's web3 users juggle multiple wallets, memorize various 

 and navigate different interfaces for each blockchain. This complexity creates an overwhelming entry barrier for newcomers.

The second barrier is fragmented liquidity. As users spread assets across thousands of blockchains and 

, they must perform complex bridging operations to use their tokens where needed. These bridging processes are confusing and time-consuming, exposing users to additional security risks.

The third obstacle is gas token fragmentation. Each blockchain demands its native token for transaction fees, forcing users to maintain small balances of various tokens just to perform basic actions. This requirement adds unnecessary complexity and costs that further discourage participation.

Particle Network addresses these challenges by creating a truly borderless web3 ecosystem. Its founders’ vision enables users to interact with any application on blockchain through a single, unified interface — without needing to understand the complex technical infrastructure working behind the scenes.

Particle Network achieves chain abstraction through its Layer 1 blockchain, which orchestrates three innovative technologies working together as an integrated system. 

 wallets that maintain the same addresses and balances across all blockchains, eliminating the need for multiple wallets and creating a unified entry point to web3.

 enables seamless cross-chain asset movement. When users interact with a blockchain in which they don't hold native assets, the system automatically routes and executes the necessary transfers behind the scenes. Users simply see their combined balance — without ever having to deal with complex bridging operations.

 completes this seamless experience by solving the token fragmentation problem: users can pay transaction fees with any token they own on any chain, since the system handles all conversions transparently. All fees ultimately settle in PARTI tokens on Particle Chain, creating a unified gas experience across the ecosystem.

This infrastructure is powered by a technical backbone of 

Particle Network's technology stack includes three innovative features working together to unify the blockchain experience.

Universal Accounts is Particle Network's flagship product. It enables chain abstraction by providing users with a single interaction point for the multichain web3 ecosystem. This feature removes the need for manual bridging, or for managing multiple wallets and assets across different networks.

When users connect their existing wallets or create new ones through Particle Network, the system assigns them a Universal Account that maintains a consistent state and balance of information across all supported blockchains.

 is the first chain-agnostic trading platform that leverages Universal Accounts. It's 100% noncustodial, and allows users to trade any token on any chain without bridging. Users can trade, send and receive assets using a unified balance for all chains, and pay for gas with any token.

The platform enables users to buy tokens regardless of their existing chain, and to view comprehensive price and on-chain data with zero 

. Users can send assets directly between any chains and purchase tokens using fiat via various payment methods. The system also provides fast confirmation times and full 

Particle Network’s Universal SDK allows developers to create and manage Universal Accounts for their users and execute cross-chain transactions seamlessly. They can implement gasless transactions for which applications cover the gas fees, leverage session keys for improved user experience and customize access control for enhanced security.

By providing this tool kit, Particle Network makes it simple for developers to build chain-abstracted applications. These applications can then offer a superior UX while leveraging the strengths of multiple blockchain networks.

Currently in its Permissioned Ecosystem phase (Q1 2025), Particle Network is focusing on building flagship applications that showcase Universal Accounts. They've already launched UniversalX, the first chain-agnostic trading platform, and plan to release two more applications targeting essential web3 use cases.

Next comes the Collaborative Ecosystem phase (Q3 2025), whereby Particle Network will partner with key players in AI, trading and 

 to expand adoption. By Q1 2026, the project will enter its Permissionless Ecosystem phase, allowing any chain or application to integrate Universal Accounts and provide users with a seamless cross-chain experience.

With a fixed supply of 1 billion tokens, PARTI serves as the economic powerhouse of the Particle Network ecosystem. The token operates at three fundamental levels: 

When users interact with any blockchain via Universal Accounts, all transactions ultimately settle in PARTI on Particle Chain. This creates continual utility and demand for the token as the ecosystem grows, without requiring users to directly hold PARTI themselves.

The token’s distribution balances immediate ecosystem needs with long-term sustainability:

This structured distribution, combined with the token's essential utility, supports sustainable growth while preventing excessive concentration of ownership.

To drive early adoption, Particle Network launched the 

, which rewards testnet participation with PARTI points. Users earn points by sending transactions, paying for gas with USDG (Universal Gas) on the testnet and completing daily check-ins. Consistent participation yields progressively higher rewards to encourage regular engagement.

Committed community members can boost their earning potential by acquiring Particle Pioneer NFTs, which increase point earnings by 2–30%. The program has gained remarkable traction, attracting over 1.7 million registered accounts and distributing more than 57 billion PARTI points.

These accumulated points qualify participants for several benefits, such as upcoming PARTI token airdrops, bonuses on the 

 and whitelist spots for ecosystem projects. The strategic distribution of points and eventual token airdrops aims to reward early supporters, while creating a broad and engaged community of PARTI holders.

Looking to trade Particle Network tokens? Bybit now offers the PARTI/USDT trading pair. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Particle Network demonstrates significant promise in the chain abstraction space, investors should carefully consider both its growth potential and risk factors before making investment decisions.

PARTI shows promising potential with its comprehensive approach to chain abstraction and strong foundation of existing integrations. However, potential investors should 

 before investing, particularly given the innovative nature of chain abstraction technology.

Particle Network solves the fragmentation problem that has effectively limited web3 adoption. Instead of juggling multiple wallets, managing separate balances and navigating different gas tokens across chains, Particle Network users have a single unified account that works everywhere. PARTI powers this seamless experience, potentially becoming the crucial link that finally makes blockchain technology accessible to everyone.

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Particle Network (PARTI): The backbone of web3 chain abstraction

You can earn yields with USDe in two ways — staking USDe via Ethena, and holding USDe on Bybit. Learn how you can make your USDe work for you in our guide.

USDe isn’t just another stablecoin — it’s a synthetic dollar that offers real rewards when held on Bybit. Whether you're a DeFi user or someone who prefers centralized platforms, USDe lets you 

 via staking or simply holding it in your exchange account. In this guide, we’ll show you how to make your USDe work harder for you.

Unlike traditional stablecoins (i.e., USDT or USDC), USDe isn’t backed by fiat reserves. Instead, it uses a smart delta-hedging strategy, essentially placing offsetting trades on derivatives markets to maintain price stability. This unique model doesn’t just keep USDe pegged to the dollar — it also creates opportunities to generate rewards from real market activity.

In addition to offering price stability, USDe allows users to earn yield through two primary mechanisms: staking via the Ethena protocol for sUSDe and passive income through 

Users can lock their USDe on the Ethena platform and receive a staked asset called sUSDe. This staked token accrues yield and functions as proof of deposit.

 that due to regulatory considerations, staking is only available in specific jurisdictions.

, you can still generate yields on your USDe holdings simply by holding the funds in your Bybit Account.

Bybit frequently offers promotions for USDe, such as 

USDe stands out in the stablecoin market due to its unique blend of capital efficiency and automated risk management. The use of delta hedging enables the Ethena USDe protocol to maintain stability without overcollateralization, while its off-exchange settlement and reserve fund architecture enhance the system’s security and resilience.

For users, USDe offers both stability and earning potential. Whether used with DeFi staking or to generate passive income on Bybit, USDe provides a versatile and yield-generating alternative to traditional stablecoins.

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Make your USDe work for you: A guide to earning rewards

There are two ways you can obtain USDe — buying it on exchanges, or minting it via Bybit On-Chain Earn. Learn how you can get started here.

USDe is a synthetic dollar asset issued by 

 (ENA) that mains peg to the US dollar without relying on traditional fiat reserves or overcollateralized crypto systems. Instead, it uses automated 

 via short perpetual futures to ensure price stability. This novel architecture makes USDe a capital-efficient alternative to traditional stablecoins like Tether (USDT) and USDC, as well as decentralized stablecoins like Dai (DAI).

While users who wish to directly mint & redeem USDe with Ethena must pass their KYC and whitelisting process; KYC’d Bybit users are able to mint & redeem USDe without leaving the exchange, a first for the space. This guide explains all the ways to obtain USDe and outlines the benefits of each approach.

For users who want to mint new USDe directly, Bybit On-Chain Earn offers a secure, automated minting interface without the need for a DeFi wallet or whitelist access.

The most straightforward way to obtain USDe is by purchasing it directly from supported cryptocurrency exchanges.

Bybit is currently the leading platform for acquiring USDe. It offers the following major Spot trading pairs, enabling you to obtain USDE easily:

USDe introduces a new paradigm in the stablecoin space — a synthetic dollar that’s capital-efficient and rewarding when held on Bybit. With its peg maintained through real market mechanisms, rather than custodial reserves, USDe represents a robust alternative to traditional stable assets.

Platforms such as Bybit have made it easier than ever to obtain and benefit from USDe, whether through Spot trading, direct minting or daily redemption.

For users looking to diversify their stablecoin holdings or explore more resilient financial primitives, your USDe is now just a few clicks away.

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How to obtain USDe: A comprehensive guide

Crypto

DeFi

web3

Curve Finance is a DEX primarily for users to swap tokens for stablecoins. Users can also provide liquidity to earn fees. Learn how it works.

Curve-Finance.jpg

 like Curve Finance. and Uniswap. Primarily a decentralized liquidity aggregator, Curve Finance allows users to swap tokens for stablecoins and to provide liquidity to the liquidity pools and earn fees.

On contrary to Uniswap, Curve Finance aims to provide users an alternative to swapping tokens faster, more direct, and at a cheaper rate. Instead of swapping token A for ETH, then ETH to token B, the use of Curve Finance eliminates the hefty transaction fees and processes swapping token A to B directly in a single transaction.

 is an Automated Market Maker (AMM)-based decentralized exchange (

. It’s focused on swapping between different stablecoins, and it features low fees and minimal slippage. Since AMMs work with a pricing algorithm instead of an order book, Curve Finance is also useful for swapping between tokens that remain in a similar price range, like different tokenized versions of Bitcoin such as 

As of June 2021, there are 39 active pools available for swapping between stablecoins and assets on the platform. However, these pools are subject to changes based on the market demand. Some of the stablecoins available include USDT, USDC, DAI, BUSD, TUSD and sUSD. One of the known stablecoin pools is 3CRV, which consists of DAI, USDT and 

Curve Finance also supports yield-bearing tokens like those from 

, with yUSD pools consisting of yDAI, yUSDT, yUSDC and yTUSD. Users that participate in this pool receive the swap/gas fees generated by the Curve pool, as well as the yield from the underlying yield-bearing tokens. 

There are pools within the platform in which liquidity providers receive a percentage of the exchange fees, while there are also lending pools that include separate DeFi protocols that offer a higher rate of interest to providers. Curve is moving toward decentralized governance by launching a Decentralized Autonomous Organization (

) in which the Curve DAO is controlled by the CRV token for voting rights.

 (AMM) is a type of decentralized exchange (DEX) protocol that depends on a mathematical formula for pricing assets. Instead of using an order book, assets are priced according to a pricing algorithm. This allows digital assets to be traded using liquidity pools, instead of having buyers and sellers.

Think of AMMs as peer-to-contract (P2C), in that there’s no need for counterparties since trades happen between users and contracts. Liquidity pools are actual shared funds made of digital tokens that are locked in smart contracts. Users supply liquidity pools with tokens, and the prices of the tokens in the pool are determined by a formula. Thus, by adjusting the formula, liquidity pools are optimized.

 becomes a liquidity provider by supplying tokens to an AMM’s liquidity pool. Liquidity providers earn a fee for providing tokens to the pool. This fee is paid by traders when interacting with the liquidity pool.

Assets are priced according to a formula which is designed for swaps in a similar range. Let’s say for example that 10 USDT should equal 10 USDC, which should equal 10 BUSD. If you convert 5 million dollars worth of USDT to USDC and then convert it to BUSD, there will be slippage. However, Curve’s formula aims to minimize this slippage, even when converting large amounts. 

In addition, the liquidity pools help to guarantee the lowest amount of slippage when exchanging digital currencies. By focusing on 

, Curve guarantees a lending protocol that is less volatile while still giving high interest on the liquidity provided.

The pools are controlled by the AMM, which rebalances pools after exchanges are made. For instance, let’s say that a pool contains USDC and TUSD. A trader at Curve Finance wants to sell USDC and uses this liquidity pool. The pool becomes unbalanced because there is now more USDC. In order to rebalance it, the price of USDC drops to encourage traders to buy USDC with TUSD. Arbitrage traders then buy TUSD with USDC. In this way, the liquidity pool rebalances the ratio of USDC to TUSD. The price incentive keeps the liquidity pools balanced.

Curve is known as an AMM exchange with low fees for traders, while also providing efficient fiat savings accounts for liquidity providers. By focusing on stablecoins, Curve allows investors to avoid volatile cryptoassets while still earning high-interest rates from lending protocols. At the same time, its model is considered conservative because it avoids volatility and speculation in favor of stability. Curve’s liquidity pools are permanently trying to buy low and sell high. 

 or Balancer, liquidity pools are made up of any token and volatility is high. By limiting the pools and the types of assets in each pool, Curve minimizes impermanent loss. This occurs when liquidity providers suffer a reduction in token value, relative to the market value of that token, from volatility in a liquidity pool.

Curve attracts liquidity providers using what’s called DeFi composability. This simply means that you can use what you’ve invested on Curve’s platform to earn rewards elsewhere in the DeFi ecosystem. Curve’s liquidity pools also contain tokenized versions of Bitcoin, such as wBTC and renBTC, which can be in the same pool, whereas wBTC and USDC cannot function together.

Since trading fees on Curve are lower than those on Uniswap, you can also earn rewards from outside of Curve with so-called interoperable tokens. Let’s say that DAI is lent out on 

, and then exchanged for a liquidity token called cDAI. Curve users can use cDAI in its liquidity pools, thus achieving another level of utility and potential earning.

The possibility of using Compound’s cTokens on Curve Finance demonstrates the composability benefits in the DeFi ecosystem. As mentioned before, Curve is also integrated with Yearn and 

 to maximize incentives for liquidity providers (LPs). Curve is unique for stablecoin trades because its liquidity and unique automated market maker attract high trading volume. Every trade earns a 0.04% trading fee paid to LPs. However, there are other ways (below) to profit from providing liquidity to Curve.

 Every trade conducted through the pools where you are a LP earns profits paid in proportion to your share of the pool. 

 Deposits in liquidity pools that aren’t utilized are deposited into other DeFi protocols to generate additional revenue.

 for stablecoin deposits on Curve are high because Curve also yields farms with pooled assets. 

 Locking CRV tokens converts them into veCRV, which is used to boost your deposit APY. 

 For additional liquidity, some pools offer incentives, such as high yields for LPs. Curve Finance is well-known for the 

 of stablecoins. As a liquidity provider, you can mix and match any of the income streams mentioned above to maximize your yields. 

CRV is Curve Finance’s native token. It is mainly used for governance, LP rewards, boosting yields (such as veCRV), and token burns. Since Curve is community-governed, its decisions are made by CRV holders who vote-lock their tokens to convert them into veCRV. Incidentally, veCRV stands for 

, meaning CRV that’s been locked into the Curve protocol for a defined time. The longer you lock CRV, the more veCRV you receive.

Keep in mind that veCRV holders earn profits from exchange fees. Curve’s protocol can be complex. Consequently, veCRV adoption is low, but increasing as yield farmers begin to understand its potential. 

Liquidity pool rewards and incentives are paid in CRV to LPs based on the size of their poolshare. Because not all trading fees are redirected to LPs, a small portion is collected and used to buy and burn CRV, reducing CRV supply.

The CRV token can be bought as well as earned through yield farming when you deposit assets into a liquidity pool and earn tokens as a reward. By providing DAI to a designated Curve liquidity pool, you can also earn CRV tokens on top of fees and interest. Yield farming the CRV token increases the incentive to become a Curve liquidity provider because you gain a financial asset and ownership of a DeFi protocol.

Curve Finance vs. Uniswap: The Differences 

The main difference between the two is that on Uniswap you can swap any ERC-20 token, whereas Curve is specifically for trading stablecoins on Ethereum. Curve is an AMM platform with many similarities to Uniswap. However, Curve differentiates itself by only accommodating liquidity pools made up of similarly behaving assets. These can be stablecoins or wrapped versions of similar assets, such as wBTC and tBTC. This allows Curve to use efficient algorithms and to display the lowest levels of fees, slippage, and impermanent loss of any decentralized exchange (DEX) on Ethereum.

Uniswap is ranked below Curve Finance in terms of TVL (Total Value Locked), which is an estimate of the potential of a DeFi yield farming platform. This indicator tells you the amount of digital currency locked and serves as a health measure for the DeFi ecosystems and yield farming market.

, Curve now has nearly $7.5 billion worth of liquidity locked in, while Uniswap has only $6 billion. The reason Curve keeps adding TVL is its focus on swapping stablecoins, a niche with less competition. Being a purpose-built market also means that Curve offers advantages to both traders and liquidity providers:

 Whale traders and high-volume trading pairs are subject to slippage, but Curve’s similar asset pools minimize it. 

 Liquidity providers on Curve supply stablecoin pairs that nearly eliminate impermanent loss.

Uniswap trades against ETH. In order to accomplish as direct a trade as possible, you need to either trade using ETH, or trade for ETH. If you trade from USDT to USDC, Uniswap turns your USDT into ETH, then trades ETH for USDC. Your swap then requires two trades, making it more expensive. Obviously, trading stablecoins on Curve is cheaper because Curve doesn’t require ETH as a base pair for trades. 

When the cryptocurrency market dips, Curve retains TVL, whereas other exchanges lose theirs. This is due to the way Curve protects liquidity providers from impermanent loss. Impermanent losses are LP profits lost when crypto price volatility unfavorably rebalances the pair assets. Since all liquidity pools require you to deposit a pair of assets, the risk increases when one of them rises or falls faster than the other. Ideally speaking, you should maintain an even 50/50 value balanced between your pooled assets.

Curve uses stable pools to walk around the impermanent loss problem. All Curve pools are either 1:1 stablecoin pools (i.e., USDT/DAI) or 1:1 synthetic token/token pools (i.e., sETH/ETH). In keeping liquidity pool pairs restricted to assets that reflect one another in value, the impermanent loss is not an issue. This makes Curve a safe haven for liquidity providers.

Overall, Curve is better than Uniswap for trading stablecoins, and it’s also a safer place to place your stablecoins, ETH and wrapped Bitcoin for steady yield income.

It should be noted that Curve Finance and other DeFi protocols are currently in the experimental phase, and are thus works in progress. Funds deposited into Curve Finance or other DeFi protocols are at risk of smart contract vulnerabilities, malicious developers, and hacks. Risks are always present with digital currencies. Evaluate these risks before entering into a new protocol or purchasing any cryptocurrency. As always, only invest what you are willing to lose. Although Curve Finance has been 

, the protocol is not exempt from risk or failure.

Curve Finance is mainly built on stablecoin pools, and stablecoins are pegged to an underlying asset. If a peg fails on a stablecoin, resulting in falling prices, liquidity providers of that pool will only hold the unpegged stablecoins. Curve supplies liquidity to other partners such as yearn.finance and Compound.

This practice, known as composability, achieves higher returns for liquidity providers. However, with this interaction comes a risk of chain collapse. Any problem with a connected DeFi protocol or partner could result in damage to Curve Finance.

Curve is one of the most popular platforms on DeFi because it favors stability and composability over volatility and speculation. However, their best reason to stay is that there is no other DeFi protocol that is so deeply interconnected with the entire DeFi ecosystem as Curve. Ethereum-based DeFi apps and protocols which are able to natively plug and play with each other are called money legos. Like these money legos, Curve and other DeFi protocols connect with each other to build financial structures so that the whole is greater than the sum of its parts. 

DeFi applications like Yearn, Compound, 

 all use Curve pools. The volume of liquidity coming into Curve from these sources drives Curve’s overall TVL and puts pressure on the CRV 

For instance, as part of their automated farming strategy, Yearn offers high-APY stablecoin vaults that deposit tokens into CRV pools. To increase returns to vault holders, Yearn buys CRV and automatically escrow-locks it into veCRV for a maximum of four years to gain an APY boost. Indeed, CRV tokenomics appear to have been created with a higher level of perfection. A nexus of incentives and rewards around stablecoin pool yields turn protocols like Synthetix into CRV holders, along with retail farmers looking for the best yields for stablecoin deposits.

What Is Curve Finance and Liquidity Pool in DeFi?

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