## Introduction to Curve v1 Curve v1 is an automated market maker (AMM) optimized for swapping tokens that have similar prices. This is a DeFi tool designed to minimize slippage and maximize gains for stablecoins and similar assets. ## Understanding Stablecoins Stablecoins are cryptocurrencies pegged to a stable asset, such as the US dollar. This means their value aims to stay close to that asset's value. USDC and DAI are examples of stablecoins that target $1. ## Swapping USDC and DAI We can use Curve v1 to swap USDC and DAI, as both are stablecoins. When swapping 1,000 USDC on Uniswap v2, we might lose $4 due to slippage. However, Curve v1 can offer a better deal, minimizing the loss to less than $1. ## How Curve v1 Minimizes Slippage Curve v1 uses a liquidity pool specifically designed for stablecoins. This pool allows for more efficient swaps, as the underlying assets have a smaller price difference. ## Example: Swapping USDC and DAI on Curve v1 We can see an example of swapping 1,000 USDC on Curve v1. The result is closer to 1,000 DAI, showcasing the minimized slippage. This is possible because Curve v1 is optimized for swapping stablecoins, unlike Uniswap v2 which handles a wider range of assets. ## Conclusion Curve v1 is a valuable tool for DeFi users looking to swap stablecoins and similar assets with minimal slippage. Its optimization for these assets ensures that trades are close to a 1:1 exchange rate, maximizing the return on your investments.