Curve Finance is a decentralised liquidity pool with its unique AMM algorithms which are designed for extremely efficient trading with low slippage and it incentivizes liquidity providers with trading fees and other rewards. With its creative voting escrow model, liquidity is concentrated for reward boosting and the deep liquidity offers a better trading quote when swapping.
Lido users can provide stETH or wstETH (wrapped stETH) as liquidity to the respective pool to earn trading fees and additional incentives while still earning the staking rewards.
Providing Liquidity on Curve
Head over to Curve Finance.
Decide stETH or wstETH to use. Curve now supports a number of EVM compatible chains, such as Ethereum, Arbitrum, Optimism. If you hold stETH, Ethereum is your only option while wstETH users have a wider range of choices.
Choose the pool to LP. When you filter by stETH, you can see a list of associated pools. As seen, stETH/ETH is the most selected pool for LP’ers on Ethereum.
Choose the token amounts. You can supply a single token or several of all but if you LP with a single token, your position still includes all of the tokens based on the pool’s proportion.
Deposit and/or stake into gauge. After entering the amounts, you can have 2 options
Click ‘Deposit’ to get LP tokens.
Click ‘Deposit and Stake’ to stake your LP tokens into gauge for additional rewards.
There are 3 yield types (i.e. Base vAPY, tAPR and Incentive Rewards tAPR). Base vAPY represents the fees that directly accrue to LP tokens including swap fees and Lido staking rewards.
For the latter 2 rewards, users have to stake their LP tokens into gauge and then manually claim them under Withdraw/Claim tab. To learn more about Curve yield, check out resources.curve.fi/lp/calculating-yield/.
1. Will I still receive daily stETH staking rewards when using Curve?
Yes, users providing stETH liquidity via Curve will still receive their daily Ethereum staking rewards. stETH in the pool still rebases and the pool’s vAPY already includes the staking APR.
2. If I do not stake my LP tokens into the gauge, can I receive the additional rewards provided by Lido?
No, You have to stake into the gauge for extra rewards if provided.