Curve is about to launch a new foreign exchange product with transaction slippage less than 2%

Odaily Odaily News: haowi.eth, director of Curve Ecological Investment Promotion Office, published an article on X to introduce Curve's upcoming update: foreign exchange swap. Michael Egorov, founder of Curve, delivered a speech entitled "Stablecoin Exchange-The Road from Judicial Arbitrage to the Foreign Exchange Market" at TOKEN2049. He said that from 2020 to 2022, 3pool (USDT-DAI-USDC) launched by Curve helped users from three different markets solve the need to exchange to other US dollar stablecoins. Curve solved the pricing problem between pegged assets through the "leveraged version of Uniswap v2". Due to demand, underlying structural differences, and liquidity, there will still be price differences in the secondary market for pegged assets, and competitors usually do not consider this problem. After several years of operation, Curve actually mastered the liquidity between pegged assets. However, this does not solve the pricing problem of non-pegged assets. Curve has made further innovations based on stable swaps, and through algorithmic automatic transfer of positions, it has achieved centralized liquidity based on AMMs between non-pegged assets. Curve will use the crvUSD system to mint other synthetic currencies, such as crvEUR, crvCNH, etc. Part of the interest income generated by the currency minting module will be allocated to the synthetic stablecoin pool. LP can obtain both transaction fee refunds and lending interest income. Through this structure, LP can obtain market-making income in the foreign exchange market that is far superior to the traditional market. Simulation data shows that under the premise of the same trading volume, assuming that Uniswap v2 is used, there will be 100% transaction slippage. If Curve stable swap is used, the transaction slippage is less than one percent (but it cannot meet the needs of fluctuations between foreign exchanges); using Curve v2 Cryptoswap will generate 30% transaction slippage. If the new forex swap structure is used, the transaction slippage will be less than 2%.