What is the 3Crypto Pool?
The Curve USD-BTC-ETH pool, commonly called 3Crypto, is one of Curve's original tricrypto implementations. Launched as part of Curve V2, this pool demonstrated that Curve's AMM technology could efficiently handle volatile asset pairs, not just stablecoins.
Historical Significance
3Crypto represents a pivotal moment in Curve's evolution:
- First major volatile asset pool on Curve
- Proved Curve V2 cryptoswap viability
- Attracted significant trading volume
- Established Curve as a multi-asset DEX
Pool Composition
The pool holds three blue-chip crypto assets:
- USDT: USD-pegged stablecoin anchor
- WBTC: Bitcoin exposure on Ethereum
- WETH: Native Ethereum exposure
This combination captures the majority of crypto market capitalization.
Curve V2 Mechanics
The pool uses cryptoswap technology featuring:
- Automatic market making for different-priced assets
- Internal price oracle with TWAP protection
- Dynamic fee adjustment based on volatility
- Concentrated liquidity around market prices
Trading Efficiency
3Crypto offers competitive execution for:
- Large BTC/ETH trades
- Stablecoin to crypto conversions
- Portfolio rebalancing
- Arbitrage between venues
Yield Analysis
LPs earn from multiple sources:
- Trading fees on all three asset pairs
- Volume from DEX aggregators
- Arbitrage flow between exchanges
The displayed APY (0.26%) reflects trading fees. CRV gauge emissions may provide additional yield.
Comparison to TricryptoUSDC
Curve offers similar pools with different stablecoin anchors:
- 3Crypto: USDT anchor
- TricryptoUSDC: USDC anchor
- Different fee earnings based on stablecoin flow
Risks
- Impermanent Loss: Major price moves cause significant IL
- USDT Risk: Tether-specific concerns
- WBTC Custody: Centralized Bitcoin custody
- Smart Contract Risk: Complex pool mechanics
- Competition Risk: Other DEXs competing for volume