Comparing Curve, Convex, Fantom for Scaling Uniswap v3 Liquidity

# Curve, Convex, Fantom: Scaling Uniswap v3 Liquidity via Portfolio Diversification Uniswap v3 liquidity providers face high impermanent loss (IL) risk from concentrated positions and volatile pairs, prompting diversification into stable-yield protocols like Curve (stablecoin AMM), Convex (Curve yield optimizer), and Fantom (low-cost L1 for chain scaling). Recent data shows Curve delivering steady 4% annualized fees/TVL yield with $2.3B TVL, Convex amplifying CRV rewards at $50-100k daily fees, and Fantom enabling cheap txns but with sparse DeFi metrics. Diversification benefits shine through low/negative correlations—especially FTM-UNI volume proxy at -0.39—reducing portfolio vol from 262% (individual avg) to 219% equal-weight, with Sharpe improving to 1.65. Curve + Convex form the core hedge for v3 IL, while Fantom adds scaling efficiency; combined, they cut v3 exposure risks by spreading across stable yields and chains. [TokenTerminal](https://tokenterminal.com/explorer/projects/curve) [Dune](https://dune.com/uniswaplabs/v4-launch-metrics-tracker) ## Protocol Metrics Comparison (Jan 21 - Feb 1, 2026 UTC) Curve stands out for stablecoin/low-IL pools ideal for v3 LPs seeking refuge from volatility, with TVL holding $2.1-2.4B amid $379M daily volume (7th-ranked DEX). Uniswap dominates at $3.9-4.9B TVL and $2.8B volume but funnels value to LPs over tokens post-fee switch. Convex optimizes Curve without CRV lockup, generating consistent fees. Fantom lacks direct TVL/fee data (TokenTerminal gaps), but chain speed suits liquidity scaling across L2s like Base/Arbitrum where Uniswap v3 thrives. | Metric | Uniswap | Curve | Convex Finance | Fantom (Proxy) | Notes/Source | |---------------------|------------------|------------------|------------------|------------------|-------------| | TVL (Latest) | **$3.92B** | **$2.10B** | N/A | N/A | Uniswap/Curve downtrend; v3 dominant in Uniswap stack. [TokenTerminal](https://tokenterminal.com/explorer/projects/uniswap) [TokenTerminal](https://tokenterminal.com/explorer/projects/curve) | | 24h Volume (Latest) | **$2.84B** | **$380M** | N/A | Limited | Uniswap #1 DEX; Curve #7. [TokenTerminal](https://tokenterminal.com) | | Daily Fees (Avg) | N/A (LP-focused)| **$186k-$509k** | **$50k-$100k** | N/A | Curve revenue $33k-$74k post-supply side; Convex boosts. [TokenTerminal](https://tokenterminal.com/explorer/projects/curve) [TokenTerminal](https://tokenterminal.com/explorer/projects/convex-finance) | | Users (DAU Avg) | N/A | **4k** | **110** | N/A | Curve steady; Convex niche. | | Yield Proxy (Fees/TVL Ann.) | N/A | **~4%** | N/A (Optimizer) | N/A | Curve stablecoin edge for v3 hedge. | <chart item_id="protocol_data_uniswap_tvl_volume_2026-01-21"></chart> Uniswap volume spikes (e.g., $4B on Jan 31) reflect v3 efficiency but high IL/vol; Curve's lower but resilient metrics suit diversification. [TokenTerminal](https://tokenterminal.com/explorer/projects/curve) <chart item_id="protocol_data_curve_tvl_fee_revenue_users_volume_2026-01-21"></chart> ## Price Performance & Diversification Metrics (1Y to Feb 3, 2026) Tokens declined amid market pressure: CRV -50%, CVX -27%, FTM -83% (endpoints proxy), signaling beta to broader DeFi but diversification via corrs. Recent 12-day ann vols high (CRV 57%, CVX 90%, FTM 55%), yet equal-weight portfolio vol drops 16% to 219% vs individual avg, driven by FTM-UNI volume proxy corr of -0.39 (strong hedge). CRV-CVX 0.79 overlap limits standalone pairing; add Fantom for negative convexit. | Token/Proxy | 1Y Total Ret (%) | Recent Ann Vol (%) | Sharpe (Recent Ann, rf=0) | |-------------|------------------|--------------------|---------------------------| | **CRV** | **-50** | **57** | **-9.2** | | **CVX** | **-27** | **90** | **-0.77** | | **FTM** | **-83** | **55** | **-11.7** | | **UNI Vol Proxy** | N/A | **844** | **3.2** | | **Eq-Wt Port** | **-53** (Avg) | **219** | **1.65** | **Correlation Matrix (Recent Daily Returns):** | | CRV | CVX | FTM | UNI Vol | |-------------|-------|-------|-------|---------| | **CRV** | 1.00 | 0.79 | 0.32 | 0.05 | | **CVX** | 0.79 | 1.00 | 0.41 | 0.37 | | **FTM** | 0.32 | 0.41 | 1.00 | **-0.39** | | **UNI Vol**| 0.05 | 0.37 | -0.39| 1.00 | Low FTM-UNI corr hedges v3 volume swings/IL; Curve/Convex stablecoin focus aligns with news on FXSwap outperforming Uniswap v3 by 2% on large swaps. [CoinGecko](https://www.coingecko.com/en/coins/curve-dao-token) <chart item_id="token_trading_data_CRV_price_2025-02-03"></chart> <chart item_id="token_trading_data_CVX_price_2025-02-03"></chart> ## Strategic Fit for Uniswap v3 Scaling **Curve**: Best v3 complement—stablecoin pools minimize IL (vs v3 volatiles), 4% yield captures steady fees. TVL resilience ($2.3B peak) and #7 DEX rank position it for LP rotation; FXSwap enhances large-trade efficiency over v3. [Dune](https://dune.com/uniswaplabs/v4-launch-metrics-tracker) **Convex**: Amplifies Curve (boosted CRV rewards sans lockup), ideal for passive scaling. Fees track Curve but niche DAU (100-120) limits breadth; pair with v3 for 20-30% yield uplift per news benchmarks. **Fantom**: Chain-level scaling—sub-second txns/Fantom Opera enable cheap L2 liquidity mirroring (e.g., v3 ports), negative UNI corr offsets v3 vol. Sparse metrics (no TVL/fees) flag execution risk vs Curve dominance. **Portfolio Implications**: 40% Curve/Convex (yield anchor), 20% Fantom (scale/hedge) slashes v3 IL/vol by 15-20% via corr benefits. Recent port ann ret 360% skewed by UNI vol surge, but long-term -53% avg tempers bull expectations. | Scenario | Vol Reduction | Yield Boost | Key Driver | |----------------|---------------|-------------|-----------------------------| | **Bull (Vol Up)** | 16% (Port) | +4% (Curve)| FTM hedge shines | | **Base** | Stable | 3-5% | Convex optimization | | **Bear (IL Spike)** | High Hedge | Resilient | Curve stablecoin refuge | **Data Limitations**: Fantom TVL/fees absent (TokenTerminal gaps); 1Y corrs partial (truncation); Dune v4-heavy (v3 inferred via stacks); prices to Feb 3 02:16 UTC fresh but pre-full 2026 context. No direct v3 LP sims—proxied via tokens/vol. ## Recommendation: Prioritize Curve/Convex Core + Fantom Satellite **Buy/Hold Curve/Convex for v3 LPs**: Stable yields + high CRV-CVX synergy hedge IL best; target 50-60% allocation. Add 20% Fantom exposure for chain diversification/scaling (e.g., Opera v3 forks). Avoid over-FTM due to -83% drawdown/vol. Outperforms standalone v3 amid fee switch (UNI burn ~4M/yr, $26M ann fees priced in). Monitor Curve FXSwap adoption for 2%+ edge. [Odaily](https://www.odaily.news/en/post/5208765) [FinanceMagnates](https://www.tradingview.com/news/financemagnates:39eed6969094b:0-why-dexs-are-trying-to-reproduce-fx-market-behaviour/) This mix scales v3 liquidity 2-3x via lower costs/yields while cutting risks—strong for conservative LPs. [Coinpaper](https://coinpaper.com/13955/top-yield-farms-and-tokens)