crvethSNOW (Curve Wrapped ETH)

crvethSNOW Pool

This pool targets the following three ETH staking pools on Curve: seth, ankreth, and steth.

Curve ETH Pools

The SnowSwap crvethSNOW pool acts as a meta-pool, allowing one to swap between these different pools cheaper and easier than trading in and out of them on Curve, to switch to the wrapped ETH token with the highest interest rate. The difference in APYs between Curve ETH LP tokens is usually more than 10% and changes based on the number of rewards that Curve’s DAO allocates to each pool periodically.

The crvethSNOW pool:

• Provides a service of swapping between the Curve’s ETH pools when the interest rates of these pools change and users want to migrate to a pool with higher APY

• Lets users easily deposit/withdraw directly into/from the Curve’s ETH pools just by swapping vanilla wETH with the Curve’s pools LP tokens: crvsETH, crvStETH, crvAnkrETH

Curve ETH Pools – Background

In December 2020, Curve launched seth, a new pool for Ethereum and synthetic Ethereum (sETH) swaps and liquidity provision. The pool allows liquidity farmers to deposit Ethereum and synthetic Ethereum in order to earn additional yields. sETH is essentially a soft peg of standard ETH, designed to stay as close in value as possible, though it often trades slightly lower which allows for arbitrage opportunities.

Around the same time, the ankreth pool was launched enabling one to swap between the ankrETH token (representing ETH staked in ANKR’s ETH2.0 staking service, STKR) and regular ETH. This pool acts as a bridge, giving exposure to ETH2.0 staking to liquidity providers as well as a share of fees while allowing traders to easily swap between ankrETH and ETH in large quantities, to exit or enter ETH2.0 staking.

Around January 2021, the steth pool was launched for users staking ETH on Lido’s ETH2.0 staking service. Before this liquidity pool for stETH, users could not swap their locked stETH back for regular ETH. This swapping between stETH and ETH effectively unstakes their ETH from the Lido contract. Without any liquidity pools, users would not be able to unstake their staked ETH until Ethereum launches Phase 2.

Swapping Between Curve ETH Tokens