Markets

Curve Finance publishes crvUSD Decentralized DeFi Stablecoin

DeFi protocol firm Curve Finance has expanded its stablecoin offering by launching a new asset called crvUSD.

On May 4, Curve Finance announced that it had published smart contracts for its long-awaited stablecoin crvUSD.

Its launch on the Ethereum blockchain introduces the next generation of decentralized stablecoins in an increasingly crowded market.

Just another DeFi stablecoin?

On May 5, Curve posted a to update Reports that the third posting of crvUSD has been completed. She added that there were no errors, but she needed to fix the problem of unexpectedly high gas usage in some cases.

Curve Finance is a decentralized exchange offering stable returns opportunities for currencies and token swaps. Its total value is about $4.97 billion, according to DeFiLlama.

Users will be able to mint crvUSD in exchange for crypto collateral deposited in the protocol. This allows them to access liquidity and yet still earn returns on their deposits.

The new collateralised-debt (CDP) decentralized stablecoin competes with MakerDAO’s DAI index, which looks a lot like it. It has also competed with the Aave stablecoin GHO which pretty much does the same for Aave users.

According to the crvUSD white paper, the stablecoin has a new automated market maker algorithm for lending filtering called LLAMMA. The mechanism is designed to minimize the effects of liquidation for borrowers.

When crvUSD that supports ETH approaches the liquidation price, the protocol starts converting it into stablecoins. When prices are adjusted upwards, they are automatically converted back into ETH. As a result, there will be smoother filter transitions rather than them suddenly happening all at once.

Moreover, Curve is pushing the decentralization angle after several high-profile centralized companies and exchanges collapsed last year.

According to DeFiLlama data, $1.83 million in collateral has already been booked in crvUSD. However, it was trading below its $1 peg at $0.927 at the time of writing.

CRV price curve prospects

Curve Finance’s native token, CRV, has seen a slight price hike following the launch of the stablecoin. CRV jumped 10% on May 4 to just below the dollar but has since retreated.

CRV was trading up 2.25% on the day at the time of writing. As a result, the DeFi token changed hands at $0.934.

CRV/USD Curve Chart for a week | BeInCrypto

Moreover, CRV has underperformed its DeFi brethren. The asset is still down nearly 94% from its August 2020 peak price of $15.92.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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