Decentralized finance exchange platform Curve Finance will soon be implemented on Equilibrium’s Polkadot parachain.
Equilibrium, a Polkadot-based DeFi project previously known for its EOS presence, is partnering with Curve Finance to bring the latter’s automated market maker platform, Curve, to the Polkadot (DOT) ecosystem, according to an announcement issued on Monday.
The plan involves integrating a Substrate-based version of Curve on Equilibrium’s Polkadot parachain and is supported by the Web3 Foundation’s Open Grant Program.
As previously reported by Cointelegraph, Substrate — Polkadot’s blockchain building framework — is already showing significant protocol-level interoperability especially in the version 2 launched back in August 2020.
Upon full integration, the Curve plugin will allow for a stablecoin exchange platform where users can trade DOT-based “coins” or tokenized cryptos like wrapped Bitcoin (WBTC) and Ren Bitcoin (renBTC).
Despite the initial liquidity limitation, Curve’s market-making algorithms will reportedly be able to minimize slippage risks usually associated with trading tokenized versions of the same coin.
Commenting on the risks of opportunistic arbitraging, Equilibrium CEO Alex Melikhov told Cointelegraph that the protocol will combine Curve's efficient token swap mechanics with Equilibrium's incentivized liquidity farming, adding:
"Users will receive up to 20% rewards in EQ tokens on their liquidity holdings inside AMM pools.