Decentralized finance protocol Curve Finance has launched on Stellar mainnet, marking its first native deployment outside the Ethereum Virtual Machine (EVM) ecosystem. The integration allows users to create liquidity pools, access existing pools, swap assets, and provide liquidity on Stellar.
According to an announcement shared by Curve Finance and the Stellar Development Foundation on October 29, the initial launch brings StableSwap to the network. Curve also plans to deploy FXSwap, which supports various asset pairs, including stablecoins pegged to different currencies, once its audit is complete.
Curve Brings StableSwap to Stellar’s Liquidity Markets
StableSwap is designed for trading assets whose prices move closely together. These include stablecoins pegged to the same currency, wrapped Bitcoin tokens, and synthetic versions of crypto assets.
The Stellar deployment allows users to create pools without permission. Users can also find existing pools, swap supported assets, and add liquidity, making Curve’s trading infrastructure available to teams building applications and issuing assets on Stellar.
A key feature of the integration is Curve’s native expansion beyond EVM networks. The protocol’s founder, Michael Egorov, said institutional demand helped drive the move.
According to Egorov, Curve began exploring deployment options on non-EVM networks where sufficient demand existed. Stellar’s relative familiarity compared with many other non-EVM chains, alongside interest from institutions, played a role in the decision.
His comments also explain the rationale behind the integration. Curve is expanding its network reach while responding to demand from institutions looking to transact on Stellar. However, the announcement did not name institutional users or provide a target for expected trading volume.
New Infrastructure for Lending Apps and Tokenized Assets
Curve pools could also support lending applications and other financial services on Stellar. These applications could use the pools to sell collateral during liquidations or help users exit positions.
However, Curve noted that these use cases depend on certain conditions. Liquidity in the pools needs to grow, and applications need to integrate them. The mainnet launch therefore does not mean all these services are already operational.
Asset issuers could also use Curve pools to build markets for supported tokens on Stellar. The network hosts stablecoins and tokenized assets, including Franklin Templeton’s tokenized money market fund. MoneyGram also uses Stellar’s infrastructure for money transfers.
Denelle Dixon, CEO and executive director of the Stellar Development Foundation, emphasized the importance of moving between assets. According to Dixon, the ability to transact efficiently between stablecoins and tokenized assets plays a central role in making them useful.
Curve’s arrival gives developers additional infrastructure to build these markets. The extent to which existing assets gain traction in the new pools will depend on available liquidity and developer integrations.
FXSwap Awaits Audit Completion
Curve’s plans for Stellar extend beyond StableSwap. The protocol also aims to bring FXSwap to the network once its audit is complete. However, the team has not provided an estimated timeline.
The two products target different types of asset pairs. StableSwap focuses on assets whose prices remain close to one another, while FXSwap supports trading between assets whose prices fluctuate relative to each other.
This includes pairs of stablecoins pegged to different currencies. According to Curve, FXSwap also supports use cases involving volatile crypto pairs and lower-volatility foreign exchange and real-world asset pairs.
Launched in 2020, Curve has expanded its offering over time to include lending products and its crvUSD stablecoin alongside its trading services. The Stellar launch adds another network to that expansion, while FXSwap’s deployment remains dependent on the completion of its audit.
