Understanding crypto pools
Understanding Curve v2¶
Crypto pools are Curve pools holding assets with different prices. Curve core originally was pegged assets but a new type of AMM allows for extremely efficient trading and low risks of non-pegged assets.
Crypto pools use liquidity more effectively by concentrating it at current prices. As trades happen, the pool readjusts its internal price to the highest liquidity region without creating losses for the pool. Crypto pools also have variable fees which can range between 0.04% and 0.40%.
Tricrypto, the first and main base pool has the following coins: USDT/WBTC/WETH for Ethereum. On Polygon, the first pool has AAVE tokens and can handle swaps with the following tokens: DAI/USDC/USDT/ETH/WBTC.
Read the v2 whitepaper by clicking here.
Becoming a liquidity provider in a Curve Crypto pool is in all ways similar to stable pools. You will gain exposure and risks to all assets in the pools. You can deposit one or all the coins in the pool. Always be sure to check the bonus/slippage warning box.
Fees on those pool range from 0.04% to 0.4%. The current fee varies based on how close the price is from the internal oracle. You can check a pool's current fee which changes every trade on the bottom of a pool page.
As with any liquidity providing in blockchain, there are some smart contract risks involved. Curve crypto pools have been audited by MixBytes and ChainSecurity but audits never eliminate risks completely.