# eCurve

## What is eCurve?

eCurve is an exchange liquidity pool on EOS, designed for extremely efficient stablecoin trading and low risk, supplemental fee income for liquidity providers, without an opportunity cost.

The easiest way to understand eCurve is to see it as an exchange. Its main goal is to let users and other decentralised protocols **exchange stablecoins (DAI to USDC for example) through it with low fees and low slippage**. Unlike exchanges out there that match a buyer and a seller, the behaviour of Curve is different, it uses liquidity pools like Uniswap. To achieve this, Curve needs liquidity (tokens) which is rewarded by those who provide it.

## Why do we need eCurve?

Stable coins have become an inherent part of cryptocurrency for a long time but they now come in many different flavours (DAI, USDT, USDC, USN, sUSD and so on) which means there is a much bigger need for crypto users to move from a stable coin to another. Also, various DeFi strategies need different stable coins and to automate these strategies, one needs an on-chain way to transition from one stable coin to another. eCurve is the best place to exchange stable coins because of its low fees and low slippage.

## What are liquidity pools?

Liquidity pools are pools of tokens that sit in smart contracts. If you were to create a pool of DAI and USDC where 1 DAI = 1 USDC. You would have the same amount of tokens, let’s say 1,000 tokens (1,000 DAI and 1,000 USDC) in the pool.

If trader 1 comes and exchange 100 DAI for 100 USDC, you would then have 1,100 DAI and 900 USDC in the pool so the price would tilt slightly lower for USDC to encourage another trader to exchange USDC for DAI and average the pool back.

