August 9, 2021: Factory Farming 🏭🧑🌾
Curve Adds Pool Factory Creation into Its Gorgeous UI
Here come Curve Factory Pools!
Creating your own pool is now as easy as building it directly through the gorgeous Curve UI:
This does not yet allow pools of volatile assets (in the vein of the glorious TriCrypto), but signals a possible step in this direction.
For the time being, factory pools can only be created with stable assets. In the case of USD or BTC pools, this requires creating a metapool pegged to Curve’s ultra-stable tripools.
The remaining options are explained in detail on the creation page, which also provides great visibility of the guts of different types of Curve pools.
Even though this just launched before the weekend, half a dozen factory pools are already up. No such thing as weekends in DeFi!
Pools representing fiat currencies are prevalent, including pools for the Korean Won, British Pound, and another Euro pool. This could be useful if, hypothetically, somebody was building a forex product.
We also observe several pools involving $CRV, including the legendary quadripool.
Now we can see for ourselves just how it would do. It has to date earned the healthiest APY of any of the Factory Pools, 1.67% at time of article. Is it likely to persist? Who knows. Some traders have raised concern about $yvBOOST’s ability to maintain peg.
While these pools are highly useful in building the machinery of DeFi, they’re likely to remain mostly useful for their utility rather than liquidity farming at the moment. They don’t yet earn rewards, although indications are this may change soon…
The only remaining question is if users actually have any appetite for DeFi anymore. With so much attention on NFTs of late, it’s entirely possible that factory pools get overshadowed by the interest in beautiful penguins, rocks, and squiggles.
Therefore we offer some free alpha for the artists out there. Commission a Curve Factory NFT. Every time a new pool is launched through the factory, generate a new NFT deterministically based on the pool properties. Launch via auction. Then spectators can enjoy watching which turns out be the better long term investment, the factory pool LP token or its JPEG. If you pick up this idea and run with it, let me know!
For more info, check our live market data at https://curvemarketcap.com/ or our subscribe to our daily newsletter at https://curve.substack.com/. Nothing in our newsletter can be construed as financial advice. Author is a $CRV maximalist and has a stake in TriCrypto.