Curve Finance Launches crvUSD Stablecoin on Ethereum Mainnet
On May 3, Curve Finance, a decentralized trading venue developer, announced the deployment of smart contracts for its crvUSD stablecoin on Ethereum’s mainnet. The crvUSD stablecoin is a U.S. dollar-pegged token with an over-collateralized structure. This means that users can only mint crvUSD by posting collateral in supported cryptocurrencies. The design leverages other crypto assets rather than fiat currencies, similar to Maker’s DAI stablecoin.
The Curve Finance team minted 20 million crvUSD tokens in total, and users can view this stablecoin supply on Etherscan. However, the deployment of smart contracts is not yet finalized because the user interface (UI) also needs to be deployed. The crvUSD developers promised to roll out a user interface for the stablecoin soon.
Curve Finance’s Mechanics for Its Stablecoin
Curve Finance’s crvUSD stablecoin is designed to mitigate the risks of an over-collateralized asset structure. The Curve Finance team implemented a fresh blockchain algorithm called Lending-Liquidating AMM or LLAMMA, which liquidates and deposits crypto assets as collateral. Developers automated the process to optimize crvUSD’s mechanics.
New Stablecoin on the Block
The crvUSD stablecoin enters a highly competitive Ethereum stablecoin market with names like DAI, USDT, and USDC. However, the stablecoin was designed by one of the largest DeFi entities on the market. Curve Finance’s authority in the space could drive crvUSD adoption among stablecoin users who tap into crypto’s $130 billion stablecoin market cap.
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