Curse takes the targets damage, not the damage output of the ability that he just used, but his damage (base damage plus stat increases from equipment etc), multiplies that by another number, depending on if you charged the ability, what upgrades you have etc and then every time the enemy that's cursed uses any ability (including base attack), he takes that number in damage. It also ignores armor.
Since it scales with the enemies damage, it should definitely scale as they grow in levels. My numbers on it might have been a bit low for a first pass though so I'll probably buff it a bit. I have to be careful though because remember that monsters won't stop attacking, like players might, so it can do a lot of damage to them really fast if they are hard hitting enemies with a high attack speed.
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