Curvance: A Modular Protocol for Optimized Liquidity Management
A new way to earn yield and unlock the full power of your liquidity
Curvance:
Abstract
Curvance is a chain-agnostic reward and utility layer for yield-bearing assets and other ERC-20 tokens. Initially to be launched on Ethereum, Arbitrum, Blast, Base, Optimism, and Polygon zkEVM, it aspires to establish itself as the de-facto reward and utility layer for any ERC-20 token.
Value Proposition
Fat-dApp thesis - An all-in-one platform for yield optimization, including auto-compounding, higher APRs on supplied assets, and the ability to collateralize a position to facilitate peer-to-peer lending/borrowing.
Support for any ERC-20 token—Curvance as a protocol allows users to unlock further capital efficiency on yield-bearing assets. The vault technology's modular approach allows the support of nearly any ERC-20 token. The DAO can easily integrate any third-party strategies and tokens into Curvance as long as there is sustained and proven demand from users and security requirements are met.
Security First - The markets (various assortment of assets and third-party strategies) are secured through a dual oracle system, circuit breakers, and audits by notable firms to ensure the utmost protocol stability and user trust.
Modular Architecture—Curvance is built with composability in mind. Implementing ERC-4626 vaults allows for a standardized approach to integrating third-party strategies and opens the opportunity for other builders to create their solutions on top of Curvance.
Multichain Equivalence - Aligned with a multichain world, the protocol is built using Wormhole’s tech stack to deploy its services on multiple chains.
Improved Tech Stack—The protocol is built from the ground up and features cross-chain voting, liquidity routing, and a custom liquidation engine.
DeFi Composability
The most defining feature of DeFi is the concept of composability. Thanks to smart contract architecture and programmability, various protocols and applications can interact with one another in a standardized way, enabling the development of innovative and sophisticated liquidity products.
A great example of DeFi composability is decentralized exchanges (DEXs) with vote-escrowed token models. The DeFi protocols that use these token models to align Liquidity Providers and DAO stakeholders create a symbiotic relationship where users can earn governance tokens by simply using the protocol.
These token models and other DeFi innovations have led to an entire industry's development and explosive growth, providing yields and allowing for user governance over protocols. This includes governance aggregators, bribe platforms, auto-compounders, and other yield-optimizing products, each with a distinct approach. Among these innovative offerings are examples like Pendle’s Yield Tokens, GMX’s GLP, Convex's vlCVX, and other long-tail assets.
Consider Curvance as the solution to the proper reward and utility layer this DeFi segment has been missing. The Curvance protocol is custom-built, starting with a blank canvas. It features a unique liquidity mining system, liquidation engine, and multichain infrastructure that can extend the protocol to virtually any chain.
Vision
The goal of Curvance is to become DeFi’s end-game and the de-facto "everything app" to facilitate user access to lending and yield generating protocols.
As DeFi continues its growth trajectory and more sophisticated yield-generating products are built upon existing DeFi infrastructure, the market size and prevalence of yield-bearing assets are expected to expand significantly.
In this evolving landscape, Curvance assumes a pivotal role, facilitating the continued growth of DeFi by empowering users to leverage their assets through borrowing, lending and staking protocols, thus amplifying their capital efficiency and opening doors to new opportunities.
A key component of this vision is Curvance's multichain strategy that enables Curvance to tap into different flywheels quickly. This removes one more step in the users journey, further simplifying the DeFi experience.
As a result, Curvance can provide services to a broader range of users and leverage the strengths of different yield-bearing asset protocols and markets, maximizing its revenue potential.
The goal is to become the top liquidity management layer for new crypto users and experienced DeFi veterans. This mission starts with supporting and integrating the biggest revenue generating protocols in DeFi, abstracting the complexity required to access these opportunities away from the user. Additionally, the multichain strategy enables Curvance to expand to emerging chains and protocol flywheels that are in demand easily.
The Curvance protocol capitalizes on the extensive composability of yield-bearing assets and ERC-20 tokens, allowing tokenized treasuries, tokenized NFT markets, and other primitives to be borrowed against in a decentralized peer-to-peer fashion. It will open a whole new world of capital efficiency and optimized yield.
On Curvance, users can access third-party protocols that facilitate earning a competitive Annual Percentage Rate (APR) on assets. Curvance unlocks additional utility and reward layers that can unlock liquidity by securing loans against user assets and in some cases earn CVE tokens via the Gauge System.
Hence, Curvance can be regarded as the final top layer for DeFi yield.
Upon beta, Curvance will be live on at least Ethereum, Arbitrum, Blast, Base, Optimism, and Polygon zkEVM. By being multichain from the start, Curvance places itself at the center of the multichain DeFi landscape and aligns itself with similar protocols.
Website: https://curvance.com/
Twitter: https://twitter.com/Curvance
Telegram: https://t.me/curvance
Discord: https://discord.com/invite/curvance
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