Markets - Curve AMM

Napier also supports markets built on Curve’s Two-Crypto-NG AMM, in addition to the native Napier AMM.

The general design of Markets, Permissionless Creation, Fees, Roles, Market Categories, and Core Interactions remains as described in the previous section (Markets - Napier AMM). This page focuses on features unique to Curve AMM–based markets.


Core Concepts

  • Curve Two-Crypto-NG Pool

    Instead of Napier’s time-adaptive AMM curve, these pools use Curve’s Two-Crypto-NG invariant. Pools are structured as PT/underlying pairs (e.g., PT-sUSDe / sUSDe). Two-Crypto-NG is designed for pairs that are highly correlated but not perfectly stable, making it well-suited to PT/underlying markets where PT converges to the underlying at maturity.

  • Execution System

    As with Napier AMM, the unified router atomically handles issuance, redemption, swaps, and liquidity actions in a single transaction.


Key Features

  • Adaptive Invariant

    Two-Crypto-NG generalizes Curve’s invariant to handle correlated assets with some volatility. This allows efficient swaps even when PT diverges modestly from the underlying, while still converging smoothly toward parity at maturity.

  • Simplified Liquidity Provision

    Unlike Napier AMM’s yield-band concentration, liquidity in Two-Crypto-NG pools spans the entire range. LPs do not need to configure APY bands, which lowers operational complexity.

  • Ecosystem Integration

    Pools deployed on Curve AMM can integrate directly with Curve’s existing ecosystem—gauges, rewards, and veCRV incentives—enabling curators to bootstrap liquidity beyond Napier’s native mechanisms.


Differences from Napier AMM

Aspect
Napier AMM (Custom v4 Hook)
Curve AMM (Two-Crypto-NG)

Trading curve design

Time-adaptive curve converging toward flatness at maturity

Two-Crypto-NG invariant for correlated but volatile pairs

Swap Fee

  • Flat percentage swap fee (not maturity-dependent)

  • Fees distributed between LPs and the Curve DAO (50%: 50%)

  • Percentage fee on the yield-receivable portion of PT (higher for longer maturities, lower for shorter)

  • Fees distributed between LPs and Napier Curators (Curator-set ratio)

IL mitigation

PT appreciation + band concentration

Efficient handling of correlated assets without explicit banding

LP strategy

Select implied-APY bands for higher efficiency

Provide liquidity across the full curve, simpler UX

Ecosystem integration

Native to Uniswap v4 Hook–based

Curve-native incentives (gauges, veCRV)

Rehypothecation support

Supported

Not supported


Incentives

  • For LPs: Earn fees from PT/underlying trades without needing to actively manage liquidity ranges; potential to stack Curve gauge rewards.

  • For Curators: Configure markets that tap into Curve’s veCRV incentive system, aligning Napier’s yield trading with Curve’s liquidity engine.

  • For Traders: Benefit from deep liquidity and efficient execution even when PT deviates moderately from the underlying, with convergence ensured as maturity approaches.


Example

A PT-sUSDe / sUSDe market deployed on Curve AMM uses the Two-Crypto-NG invariant.

  • LPs deposit liquidity once, without choosing yield bands, and earn both trading fees and potential Curve incentives.

  • Traders execute PT ↔ sUSDe swaps with low slippage, even if yields shift before maturity.

  • Curators may direct veCRV incentives toward their market, attracting deeper liquidity from Curve’s ecosystem.


Get Involved

Napier Markets are open and composable by design. Choose your path and dive deeper with the dedicated guides:

  • For Users → User Guide: Learn how to trade PT/YT, provide liquidity, and use PT as collateral.

  • For Curators → Curator Guide: Understand how to launch markets, configure parameters, and build your own onchain yield products.

  • For Builders → Developer Guide: Integrate Napier Markets into your protocol with SDKs and APIs.

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