Curve is breaking into the Tezos ecosystem in a very big way, deploying on the Etherlink Layer-2 network to bring vast liquidity, lower trading fees, and minimal slippage for stablecoins. The move is designed to accelerate trading on the Tezos blockchain, and Curve will also participate in Etherlink’s AppleFarm rewards program.
Etherlink, which launched its mainnet last year, is an EVM-compatible L2 network that’s powered by Tezos Smart Rollups. It’s a major driver of growth for Tezos, helping to dramatically increase transaction speeds while lowering costs and encouraging more developers to explore the energy-friendly blockchain.
Etherlink Bridges Ethereum Devs and Tezos Infrastructure
When most people think about L2s, they imagine a sidechain that’s loosely associated with the main network, only checking in now and again to post its data. But that’s not the way it works with Etherlink. It’s an L2 that’s heavily reliant on its parent chain, inheriting Tezos’s governance, security and upgrades, as well as its finality. Each confirmation, transaction and every piece of data posted onto it immediately flows to the main blockchain, only it works much faster. It’s a layered system, but it holds itself together, different from other L2s.
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Besides supporting faster transactions and lower fees, Etherlink also breaks down barriers by changing how people build on Tezos. When a developer builds a native dApp for Tezos, they’re required to use specialized tools such as SmartPy or Michelson, and they need to design it for the chain’s unique architecture.
Etherlink makes things easier, lowering the bar for developers by supporting more familiar, Ethereum-based dev tools, thanks to its EVM compatibility. In other words, Etherlink speaks the same language as Ethereum, so developers can bring their codebase and wallet and start building straight away. This gets around the need to learn a new stack and shortens development times, making it much simpler to explore the Tezos world.
Tezos has high hopes for Etherlink to supercharge growth in its network, and the integration of Curve means it’s making good progress in that direction.
Curve Brings Stablecoin Depth and Incentives to Etherlink
Curve has created a DeFi platform based on an Automated Market Maker, but unlike platforms such as Balancer and Uniswap, it’s laser-focused on stablecoins, with liquidity pools that are exclusively composed on those assets, such as USDC and USDT, and wrapped versions of cryptocurrencies, like wBTC and tBTC. This unique operational model enables Curve to implement more efficient algorithms that translate to much lower fees, often below 0.1%, when trading stablecoins. It also minimizes slippage and reduces the impact of impermanent loss, meaning greater value for liquidity providers.
Already one of the major liquidity engines in the EVM world, Curve is now set to become the foundation of stablecoins and pegged assets on Tezos and Etherlink, vastly increasing the amount of liquidity available on both.
“A Curve deployment on Etherlink gives the Tezos ecosystem access to deep stablecoin liquidity and efficient pegged asset trading,” said Curve developer Maximilian Roszko. “That’s what makes this launch strategically interesting for us.”
Curve is also doing its bit to encourage more users and builders to engage with the Etherlink ecosystem. It’s joining in for Apple Farm Season 2, a loyalty initiative that aims to incentivize participation by doling out more than $3 million in rewards.
David Relkin, the head of DeFi at Etherlink’s main developer Nomadic Labs, said the launch of Curve is a huge deal for the L2 network. “It changes everything for Etherlink users,” he promised. “Traders can now access the deep liquidity they’re used to on mainnet, but with the speed and cost benefits of our Tezos-native rollup architecture.”
Etherlink has gained rapid momentum in recent months, with Curve just the latest in a string of major DeFi players to embrace the ecosystem. In June, Oku launched its DeFi aggregator on Etherlink, bringing a Uniswap v3-like experience to the network with features such as advanced order routing, while Midas recently introduced yield-bearing tokenized assets such as mBASIS, mTBILL, mMEV and mRE7YIELD, expanding its nascent DeFi ecosystem.
Earlier this year, Etherlink integrated with Jumper Exchange, expanding its interoperability to more than 50 Layer-1 blockchains and L2s, including Arbitrum and Base. The constant stream of integrations has resulted in a stream of network activity on Etherlink, which recently saw its total value locked peak at $47.7 million, with $88.5 million in on-chain asset value. It has also registered some major performance gains, with bridging times reduced to under 60 seconds, and a 30-times improvement in storage speed for smart contracts.
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People Also Ask:
Etherlink is a next-generation Layer 2 blockchain built on the Tezos ecosystem. It’s designed to offer high throughput, low fees, and full EVM (Ethereum Virtual Machine) compatibility, enabling seamless deployment of Ethereum-based smart contracts.
Etherlink supports both native tokens and bridged ERC-20 tokens. You can bridge assets from Ethereum and other networks via supported bridges.
Yes, Etherlink inherits security from the Tezos Layer 1 blockchain and uses robust consensus and governance models to ensure reliability and resistance to common vulnerabilities.
