TL;DR: Tricrypto on Curve Finance, a DeFi protocol, is an innovative pool consisting of three major assets (USDT, WBTC, and ETH), providing investors exposure to key cryptocurrencies while earning potentially high yields. It's available on Ethereum mainnet, Arbitrum, Avalanche, and Optimism.
However, high deposit fees suggest using Ethereum mainnet only for investments over $100,000. An alternate platform, Convex Finance, offers additional yield when depositing Curve LP tokens.
What is Tricrypto?
Tricrypto on Curve Finance is one of the most popular and innovative pool types in the DeFi landscape. It stands as a testament to the platform's constant endeavor to provide cutting-edge financial solutions to its users. The pool, containing three significant assets - USDT, WBTC, and ETH - has effectively emerged as a platform of choice for investors seeking exposure to prominent cryptocurrencies such as Bitcoin and Ethereum.
The unique feature of this pool is that it significantly reduces the volatility typically associated with these high-performing assets, while offering potentially high yields. Investors are not just benefitting from the potential appreciation of the cryptocurrencies, but are also able to earn substantial yield that can reach as high as 15% APY. This dual advantage of exposure to major cryptos and high yield makes Tricrypto one of the most attractive and rewarding options on Curve Finance.
How to Deposit Assets into Tricrypto?
The TriCrypto pool is available on Ethereum mainnet, Arbitrum, Avalanche and Optimism. To get started, the first choice you need to make is what network you want to use for Curve Finance's Tricrypto farm. We recommend avoiding Ethereum mainnet unless you have over $100,000 because the fees to deposit into the pool are over $500, even when gwei is low.
The guide below is a quick overview of how to deposit ETH, WBTC and USDT on Arbitrum's Tricrypto pool, which charges under $1 in fees and pays a yield of up to 8% APY.
- Download MetaMask Wallet and add the Arbitrum Network.
- Send an equal amount of ETH, WBTC and USDT to your wallet. Example, if you want to farm $90,000 of assets - you will need $30,000 ETH, $30,000 WBTC and $30,000 USDT.
- Visit the Tricrypto Pool on Curve Finance.
- Input the amount you to deposit in USDT, wBTC and ETH - then select 'Deposit'.
How to get Boosted Tricrypto Yields
If you have deposited into Tricrypto on Ethereum mainnet, you will be able to use an application called Convex Finance. This application allows you to deposit the Curve LP tokens like Tricrypto to earn extra yields. At the time of writing, Convex Finance is offering an extra 16% APY to deposit Tricrypto2 onto their platform.
Is Curve Finance and Tricrypto Safe?
Curve Finance and its Tricrypto pool are generally considered safe, with a robust security history and a high Total Value Locked (TVL) over $3 billion. Neither Curve Finance nor its partner, Convex Finance, has experienced hacks or major bugs causing fund loss. However, it's crucial to remember that any DeFi engagement comes with inherent smart contract risks.
Hence, only invest what you can afford to lose. Stay updated by following Curve Finance's official Twitter handle, @curvefinance, for real-time information about the platform. Investing in DeFi can be rewarding, but it's essential to proceed with caution.
What is Curve Finance?
Curve Finance is a decentralized finance (DeFi) protocol that facilitates trading and liquidity provision for ERC20 tokens. Its unique Liquidity Provider (LP) program empowers users to earn rewards by supplying liquidity to various pools. This mechanism allows LPs to earn yield on their staked assets, maximizing their return potential.
Known for competitive interest rates, minimal fees, and swift transactions, Curve Finance stands as a popular choice among DeFi protocols. Since its inception in 2019, it has witnessed a consistent surge in popularity, establishing itself as a reliable platform in the DeFi space.
What are the Benefits of Becoming a Curve Finance LP?
As a Curve Finance user and liquidity provider (LP), you will be able to:
- Generate yield from your deposited assets.
- Trade a variety of ERC20 tokens with low fees and low slippage.
- Provide liquidity for the Curve pool and earn fees.
- Move multi-chain with their EVM network integrations.
What are the risks of becoming a Curve Finance LP?
As with any investment, there are risks involved in becoming a Curve Finance LP. These risks include, but are not limited to:
- Smart Contract risk: Although the contracts for Curve Finance are audited, bugs and exploits are still prevalent in the DeFi ecosystem and their platform may be susceptible.
- Market risk: The value of your deposited assets may fluctuate due to market conditions.
- Liquidity risk: There is a risk that the tokens you have deposited may not be sufficiently liquid and you may not be able to exit your position.
- Regulatory risk: The regulatory environment for DeFi protocols is still evolving and there is a risk that regulations may be enacted that could adversely affect Curve Finance or the assets you have deposited.
If you would like to learn more about Curve Finance and how to become a liquidity provider, you can visit their website or read their documentation. You can also join their community on Discord or Telegram.
In conclusion, Tricrypto on Curve Finance represents a unique and attractive opportunity for investors seeking exposure to major cryptocurrencies like Bitcoin and Ethereum, while simultaneously earning high yields. This DeFi solution, while offering potential advantages, also comes with inherent risks like smart contract vulnerabilities, market volatility, liquidity issues, and evolving regulatory environment.
The convenience of Tricrypto, however, is evidenced by the ease of asset deposition on multiple networks and the possibility of boosted yields through platforms like Convex Finance. As with any investment, prospective investors should exercise due diligence, understanding both the rewards and risks, and invest only what they can afford to lose.