Curve Finance Expands StableSwap AMM Technology To Stellar Mainnet Ecosystem

TL;DR

• Curve Finance launched StableSwap on the Stellar mainnet, marking its first native deployment outside the EVM-compatible ecosystem.
• Users can now create liquidity pools, swap assets, and provide liquidity. The integration will also support the development of markets for stablecoins and tokenized assets.
• Curve plans to bring FXSwap to Stellar once its audit is complete. The tool will allow users to trade assets whose prices fluctuate relative to one another, including different currencies.

Curve Finance launched its StableSwap protocol on the Stellar mainnet, marking its first native deployment outside blockchains compatible with the Ethereum Virtual Machine (EVM).

The integration allows users to create permissionless liquidity pools, swap assets, and provide liquidity to existing markets.

StableSwap is an automated market maker (AMM) designed to facilitate trading between assets whose prices remain closely correlated, such as stablecoins pegged to the same currency, tokenized versions of Bitcoin, and synthetic cryptocurrencies.

Curve Seeks to Expand Tokenized Asset Markets

The deployment is partly driven by financial institutions’ interest in using Curve’s technology beyond EVM networks.

Michael Egorov, founder of Curve Finance, explained that the protocol began exploring other blockchains after identifying demand for its services. According to Egorov, Stellar offers a relatively familiar environment for Ethereum developers and has attracted strong institutional interest.

StableSwap pools could also be used by lending applications and other financial services to sell collateral during liquidations or help users exit positions.

However, these functions will require sufficient liquidity, and the relevant applications will need to integrate the protocol’s pools.

Asset issuers will be able to use the infrastructure to establish trading markets on Stellar, a network that already supports stablecoins and tokenized assets, including a tokenized money market fund from Franklin Templeton.

Stellar is also used by MoneyGram for money transfers.

Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, said users need efficient ways to exchange stablecoins and tokenized assets. Curve’s integration will provide developers with the infrastructure to build those markets.

FXSwap Will Come to Stellar After Its Audit Is Complete

The protocol also announced that it plans to deploy FXSwap on Stellar, although it has not provided a launch date. The tool will be introduced once its security audit is complete.

Unlike StableSwap, which is optimized for assets with closely correlated prices, FXSwap allows users to trade instruments whose values fluctuate relative to one another.

These include volatile cryptocurrency pairs, foreign exchange transactions, and markets for real-world assets with different valuations.

According to DeFiLlama data cited in the announcement, the protocol currently holds approximately $1.27 billion in total value locked (TVL).