Curve Explained: Stablecoin Pools, LP Exposure and Lending
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Curve founder Michael Egorov's automated market maker remains the dominant decentralized exchange for stablecoin swaps, with its stablecoin pools generating trading fees, CRV token incentives and lending interest as three distinct revenue streams for liquidity providers. The protocol's liquidity pools hold billions in total value locked across Ethereum and other chains, with LP tokens representing shares of a constantly changing asset mix rather than fixed holdings. Revenue from trading fees, CRV emissions and lending markets like lending pools accrue differently to providers, meaning LP exposure varies by pool type and strategy. The explainer matters because Curve's stablecoin infrastructure underpins much of DeFi lending and peg maintenance, making LP economics central to protocol health. Watch next: how fee distribution changes and CRV incentive levels affect liquidity flows across Curve's pools and lending integrations.
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