Curve Finance's AMM is making its way to another blockchain – Polkadot.
Money market Equilibrium is building a cross-chain implementation of Curve Finance on its Polkadot parachain. Once finished, the automated market maker (AMM) will exist on both Ethereum and Polkadot.
“We’re excited to see the demand for stablecoin liquidity driving the technology to other chains,” Curve Finance CEO Michael Egorov said in a statement. “Deep liquidity is vital for adoption of new applications like Equilibrium, as well as for the adoption of new blockchains themselves.”
Fees, fees, fees
The cross-chain project comes as transaction fees continue to soar on Ethereum, the preeminent blockchain for DeFi. As CoinDesk reported, the average transaction fee broke north of $20 last week.
DeFi projects are now scrambling to address heightened fees, a factor that pushes out small investors from the young market. One such answer is rollups, a throughput solution that bundles transactions off-chain and then settles them on-chain in one lump. Curve Finance has been working on a rollup solution using zero-knowledge proofs and even has a live version.
Yet, many DeFi apps are placing bets on many horses – including other blockchains. For example, DeFi lending market Compound announced its new Compound Chain currently under development across a few networks.
“With Curve Finance running on our Polkadot parachain, we have a powerful tool for exchanging homogenous assets on Polkadot, whether they are DOT-based or not,” Equilibrium CEO Alex Melikhov said in a statement. “We stand to unlock some true cross-chain functionality.”
Correction (Feb. 9, 23:55 UTC): A previous version of this article implied Curve Finance would be building the AMM on Polkadot in conjunction with Equilibrium. However, Equilibrium will be building the product alone.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.