Understanding Factory Pools
In collaboration with Yearn, Curve has developed a pool factory, a way for anyone to deploy a Curve Metapool with the 3Pool or sBTC Pool.
This means anyone can now deploy a pool for their stable or algo coin as well as a tokenized form of Bitcoin in a few clicks.
Those new pools have very few parameters which need to be set when creating the pool:
- Fee (minimum 0.04% and maximum of 1%)
- A Parameter (recommended you speak to Curve team member if you're not sure how to choose this, volatile algo coins need an A parameter around 5-10)
There are a few things to know about those pools:
- 50% of fees regardless of chosen fee will go to the Curve DAO
- Destroying Curve pools once deployed is not possible
- Curve is not responsible for any of the assets going in there so you must do your own research when trading in the pool factory. The Curve team and DAO also have no control over the tokens added in the factory which means you must verify the token addresses you trade on there.
- The only admin change that can be made by the Curve DAO is ramping the A (amplification) parameter
- Tokens with more than 18 decimals are not supported
- After deploying a pool, you must seed initial liquidity
Historically, pools were only listed on the Curve main UI if they met the following requirements.
- At least one audit
- Marketcap of at least $3m
- Fortnightly volume over $3m
- Pool liquidity over $500k in 3CRV
- Pools on Factory v2 only
These requirements have been loosened. Pools now display by default if their TVL is not below the threshold of what is considered "small."