Curve Finance launches an Ethereum cash exchange pool
- The new Curve pool in ETH / sETH allows whales to arbitrate.
- There is no news yet about a new YETH safe from Yearn Finance.
- The CRV token continues to collapse, losing another 5%.
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The Curve Finance decentralised financing agreement launched a new pool for Ethereum and synthetic Ethereum swap and liquidity provision (sETH).
The pool allows liquidity providers to deposit Ethereum and synthetic Ethereum in order to earn additional returns. The sETH is essentially a Bitcoin Evolution flexible anchor for standard ETH, designed to remain as close as possible to its value, although it often trades slightly lower, allowing for arbitrage opportunities.
The newly launched pool contained 65% ETH and 35% sETH at the time of writing, with a total value estimated at around $155,000 at current prices.
Finally, we have a $ ETH / $ SETH pool! Ethereum is so good that you might want to exchange it for Ethereum.
On the negative side, the interface reported that there was an administration fee of 0.04% and that the current average transaction cost was $7.82, making this new offer really only viable for whales.
The current ETH / sETH exchange rate is 0.992, so investors would need large amounts to make a profit from the arbitrage between the two assets.
No Ethereum return on Yearn
There has been a strong demand for Ethereum-based safes this year. The one launched by Yearn Finance at the beginning of September was a victim of its own success and was eventually considered a failure. By the first day of the launch, more than $100 million of cash had been deposited, which at the time amounted to more than 230,000 ETH.
The high-demand YETH safe originally offered more than 80% annual percentage returns on the Ethereum deposit alone. It survived its first price collapse but was quickly closed to other deposits to mitigate risk.
Ethereum ETH Bridge Tokens Private
Even the deposit of a modest amount of ETHs resulted in a loss after a few months, given the high transaction fees, poor returns and the 0.3% withdrawal fee – as many found out at their expense.
At the time of writing, the yETH pool was still suspended and was earning a paltry APY of 0.84% which would not be enough to cover most of the transfer fees. Liquidity had dropped to only 36,800 ETH for a value of about $23 million at current prices.