Interoperability is a crucial area of consideration in the decentralized finance space. The high transaction fee on Ethereum blockchain is often a roadblock in developing newer DeFi Projects which has compelled several market players to come up with efficient cross-chain solutions.
Curve Finance is partnering with Equilibrium to develop a cross-chain version of its blockchain on Polkadot.
Equilibrium Brings Curve Finance AMM on Polkadot Parachain
While Curve Finance automated market maker like many other DeFi projects, is implemented on Ethereum right now, the high cost of swapping assets on Ethereum blockchain has always been a pain point. To address the issue, Equilibrium is developing g a cross-chain solution for Curve Finance on the Polkadot parachain, thus bringing the Curve’s AMM on Polkadot and Ethereum parachain.
Equilibrium CEO Alex Melikhov said “With Curve Finance running on our Polkadot parachain, we have a powerful tool for exchanging homogenous assets on Polkadot, whether they are DOT-based or not,”
The project aspires to integrate a substrate version of Curve AMM on the Polkadot parachain backed by the Grant Program by Web3 Foundation. Substrate is Polkadot‘s blockchain building framework which provides protocol-level interoperability. The Curve Plugin will facilitate an exchange platform for the users to trade stablecoin or wrapped bitcoin. The project would incorporate the smart token swap mechanism available in Curve Finance and couple it with the highly efficient liquidity farming feature of Equilibrium.
The Equilibrium CEO said that the protocol is designed to minimize the transaction costs. Equilibrium is aiming to develop a full-fledged interoperable Decentralized finance ecosystem, the integration of Curve Finance protocol on Equilibrium Polkadot Chain is a step towards the same.
Talking about Polkadot Blockchain, Melikhov noted that “Most DeFi operates in Ethereum right now, so Equilibrium with Curve protocol, bridged to Ethereum, and Polkadot’s unique architecture, becomes one of the foremost projects in the space of cross-chain value transfers.”
Curve Finance has more than $3.7 Billion in total locked value for Ethereum with high volumes of trades summing up to $3 Billion every month. The announcement of the implementation of Curve Finance on Equilibrium Polkadot Parachain has propelled the price of CRV token as well. The Total Value Locked and the CRV token value touched a new all-time high yesterday after the announcement.
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