Curve Finance Launches New Pool For Ethereum And Synthetic Ethereum Swaps

It is no longer a secret that the exposure and marketability of leading altcoin Ethereum have increased largely in the last few weeks of the month. Analysts believe the attention and innovation surrounding the cryptocurrency is largely due to the influx of traders around its network, which has coincidentally increased largely due to the launch of its new network, Ethereum 2.0.

DeFi protocol Curve Finance, in line with the recent innovations surrounding the blockchain, has now launched a new pool for Ethereum and synthetic Ethereum (sETH) swaps which will allow liquidity farmers who deposit the tokens, earn additional yields.

How the pool will operate

In the official announcement on Twitter by Curve Finance, it confirmed that they finally have a pool for ETH and sETH and promised their customers that they are making Ethereum so good that they would only want to swap it with Ethereum, which sarcastically mean sETH. On the other hand, sETH is a form of ETH which was designed to stay close in value to ETH but unfortunately trade lower and allows for arbitrage opportunities.

The new pool is currently worth about $155,000 at today’s prices, which consist of 65% ETH and 35% sETH as at now. However, like most innovations, the new pool comes with a downside which includes an admin fee of 0.04% and a current average transaction cost of about $7.82. The two limitations only mean that the new pool offerings will cater to Whales. Farmers will also need big bags to make profits from the arbitraging of both assets, especially with the exchange rate pegged at 0.992.

The previous yETH vault launch ended up in failure

The year has witnessed a high demand for Ethereum based innovation. Earlier in September, Yearn Finance launched an Ethereum-based vault which ultimately ended up as a failure. On the first day of launch for the Yearn vault, yETH had seen about 230,000 ETH($100 million as of then) deposited into its systems.

The system had initially promised about 90% annual rewards on deposits into the vault and manage to survive its first price crash before it’s deposit platform was closed down to manage the risk. And also like the Curve Finance pool, a lot of transaction fees haunted the yETH e.g high gas fees, pitiful returns, and Yearn’s 0.3% withdrawal fee.

Liquidity on the vault has slumped to about 36,800 ETH as of today and the company is hoping to resuscitate itself by building another Ethereum vault with new strategies under its version 2 vaults launch. As of the time of writing, nothing has been officially announced.