Detailed Instructions

The core innovation of Curve is the StableSwap invariant, a weighted combination of the constant product (Uniswap) and constant sum invariants. The formula is expressed as:

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A * n^n * sum(x_i) + D = A * n^n * D + D^{n+1} / (n^n * prod(x_i))

Where:

• A is the amplification coefficient, a tunable parameter (e.g., 100 for a standard 3pool) that controls the curve's "flatness."

• n is the number of tokens in the pool (e.g., 3 for DAI, USDC, USDT).

• x_i represents the reserve of token i in the pool.

• D is the total liquidity or invariant when all assets are balanced.

• Sub-step 1: Analyze the constant sum component (A * n^n * sum(x_i)) which allows for minimal slippage near equilibrium.

• Sub-step 2: Analyze the constant product component (D^{n+1} / (n^n * prod(x_i))) which ensures liquidity is never fully depleted.

• Sub-step 3: Observe how a high A value (e.g., 2000) makes the curve behave more like a constant sum, drastically reducing slippage for small trades.

Tip: The invariant is solved iteratively for D using the Newton's method in the smart contract, as there is no closed-form solution.

Detailed Instructions

Price for a token is derived from the partial derivative of the invariant. The exchange rate between two tokens, i and j, is given by dx_i / dx_j. In practice, the contract calculates the amount received using the get_dy view function. For a pool like the 3pool (0xbEbc44782C7dB0a1A60Cb6fe97d0b483032FF1C7), you can query it directly:

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// Example using ethers.js to get quote
const dy = await curvePoolContract.get_dy(i, j, dx);

• Sub-step 1: Calculate effective price by dividing the amount of token j received (dy) by the amount of token i sold (dx).
• Sub-step 2: Determine slippage as the difference between this effective price and the ideal equilibrium price (usually 1:1 for stables). Slippage increases exponentially as reserves move away from balance.
• Sub-step 3: Apply the trading fee, which is typically 0.04% (4 basis points). The fee is deducted from the dy amount before the user receives it, and it accrues to liquidity providers.

Tip: The amplification parameter A is crucial; a miscalculation here can lead to significant arbitrage losses or impermanent loss for LPs.

Detailed Instructions

Providing liquidity requires depositing a balanced proportion of all pool tokens. For the 3pool, you must deposit DAI, USDC, and USDT in equal USD value. The contract mints LP tokens (e.g., 3Crv) representing your share. The critical governance parameter is the amplification coefficient A, which is adjustable via a DAO vote.

• Sub-step 1: Add liquidity by calling add_liquidity with an array of amounts, ideally using the on-chain calc_token_amount first to preview minted LP tokens.
• Sub-step 2: Monitor the A parameter which can be fetched from the pool contract. For example, on Ethereum mainnet: A = await curvePoolContract.A(). It's stored as uint256.
• Sub-step 3: Understand A's impact: A higher A (e.g., 2000) creates a flatter curve, better for stables but increases susceptibility to impermanent loss if one asset depegs. A lower A (e.g., 50) behaves more like Uniswap.

Tip: Changes to A are executed via a time-weighted vote, requiring a 7-day delay for security, managed by the Curve DAO.

Detailed Instructions

The veTokenomics model ties governance power and fee sharing to the long-term locking of the CRV token. When you lock CRV, you receive veCRV (vote-escrowed CRV), which decays linearly over a max lock time of 4 years. Your veCRV balance determines two key benefits:

• Sub-step 1: Boost your liquidity gauge rewards. Deposit your LP tokens (e.g., 3Crv) into a liquidity gauge (e.g., 0xbFcF63294aD7105dEa65aA58F8AE5BE2D9d0952A). Your share of CRV emissions is multiplied by a boost factor up to 2.5x, calculated as min(2.5, 0.4 + 0.6 * (your_liquidity * veCRV_total) / (your_veCRV * total_liquidity)).
• Sub-step 2: Vote on gauge weights using your veCRV power on the DAO (dao.curve.fi). This directs CRV inflation rewards to specific pools weekly.
• Sub-step 3: Claim a share of protocol fees. 50% of trading fees from all pools are distributed pro-rata to veCRV holders, claimable periodically.

Tip: The system creates a powerful flywheel: more liquidity attracts more volume and fees, which attracts more CRV lockers to vote for that pool's gauge, further increasing its rewards.

Acquire and Lock CRV Tokens

The first step is to acquire CRV tokens, typically via a decentralized exchange. You then lock these tokens in the official Vote-Escrow (veCRV) contract at address 0x5f3b5DfEb7B28CDbD7FAba78963EE202a494e2A2. The lock duration is a critical parameter, ranging from 1 week to a maximum of 4 years. The amount of veCRV you receive is directly proportional to both the quantity of CRV locked and the chosen lock time, following the formula: veCRV = CRV_amount * (lock_time_in_weeks / 208). This creates a time-weighted commitment.

• Sub-step 1: Approve the veCRV contract to spend your CRV tokens. This is a standard ERC-20 approval transaction.
• Sub-step 2: Call the create_lock function on the contract, specifying the amount and the desired unlock time (as a UNIX timestamp).
• Sub-step 3: Confirm the transaction. Your veCRV balance is now non-transferable and will linearly decay until the unlock date.

Tip: A longer lock period yields a higher initial veCRV balance and a slower decay rate, maximizing your governance power and reward boosts.

Delegate Voting Power to Gauges

With veCRV in hand, you can participate in weekly governance votes to direct CRV emissions (inflation rewards) to specific liquidity pools. Each pool has an associated Gauge contract. Your voting power is equal to your veCRV balance at the time of the snapshot. Votes are cast on the Curve DAO interface, where you allocate your voting power across different gauges. The total weekly emission of 2,000,000+ CRV is distributed proportionally based on the votes each gauge receives.

• Sub-step 1: Navigate to the 'Vote' section on the Curve DAO page (dao.curve.fi) and connect your wallet.
• Sub-step 2: Review the list of active gauges and their current vote weights. You can vote for up to 10 different gauges.
• Sub-step 3: Allocate your voting power (a percentage of your veCRV) to your chosen gauges and submit the vote transaction. Votes are active for 10 days and lock your veCRV from being transferred or used in other votes during that period.

Tip: Strategic voting for pools where you provide liquidity can significantly increase your yield by attracting more CRV rewards to that pool.

Claim Rewards and Understand the Boost

Holding veCRV entitles you to a share of the protocol's trading fees and any bribes distributed to gauges you voted for. More importantly, it grants a liquidity provider boost of up to 2.5x on your CRV rewards for providing liquidity in Curve pools. The boost is calculated using a formula that compares your liquidity to the total liquidity in the pool, weighted by your veCRV balance. The maximum boost is achieved when your share of the pool's liquidity is less than or equal to 40% of your share of the total veCRV supply.

• Sub-step 1: Claim your protocol fee rewards (3Crv tokens) and any bribe rewards directly from the Curve DAO interface or the relevant gauge contract.
• Sub-step 2: To benefit from the yield boost, you must first deposit liquidity into a Curve pool that has an active gauge.
• Sub-step 3: Your boosted CRV rewards are automatically calculated and accrue. You can claim them from the pool's gauge page. The boost is applied in real-time; you do not need to stake your LP tokens separately.

Tip: Use the balanceOf and working_balances views on a gauge contract to check your effective (boosted) balance versus your raw LP token balance.

Manage and Extend Your Lock

Your veCRV position is not static. You can increase your voting power and reward boost by either depositing more CRV into your existing lock or by extending the lock duration. This is done through the increase_amount and increase_unlock_time functions on the main veCRV contract. Importantly, you can only extend your lock time, not shorten it. Performing either action resets the linear decay clock, giving you a new, higher veCRV balance based on the updated parameters.

• Sub-step 1: To add more CRV, call increase_amount with the additional CRV amount after approving the contract. This increases your veCRV balance immediately.
• Sub-step 2: To extend the lock, call increase_unlock_time with a new, later UNIX timestamp. The new date must be beyond your current unlock time and cannot exceed 4 years from the current block time.
• Sub-step 3: You can also perform both actions in a single transaction using the deposit_for or modified contract interactions for efficiency.

Tip: Regularly extending your lock ("re-locking") is a common strategy to maintain a high veCRV balance and avoid the dilution of your governance influence as your lock nears expiration.