According to the decentralized protocol’s founder, Michael Egorov, Curve Finance might launch a decentralized stablecoin called crvUSD next month. The news came to light on the Curve community Telegram channel.
The crvUSD will be an over-collateralized stablecoin, a type of stablecoin backed by excess collateral (typically another crypto). It will be similar to Dai, the most popular decentralized stablecoin of the Ethereum ecosystem.
The announcement comes a little over a month after Egorov made a statement that indicated the possibility of a stablecoin launch. The news follows on the heels of Aave. In August, the liquidity protocol approved the launch of its stablecoin.
Stablecoins in 2022: The context of crvUSD’s arrival
Stablecoins did not fare well in 2020. Many popular stablecoins lost their parity with the US dollar one after the other, starting with Terra Luna’s stablecoins. Others like Magic Internet Money (MIM) and Tron’s USDD followed soon after. The curve was caught in the middle since it specializes in stablecoin swaps. Its total value dropped from $24.3 billion in January to $5.8 billion.
With the DeFi community increasingly calling for decentralized stablecoins and Curve in the process of launching one of its much-demanded stablecoins, though, things seem to be looking up.
Reactions so far
Egorov had hinted during the Egorov Redefine Tomorrow 2022 crypto conference, in July, and there has been much speculation about a stablecoin since. The Curve community seems to be all in for crvUSD, and the comment by Egorov received positive responses from members.
If there are no delays, crvUSD will be a reality by the end of this month.
FAQs
What are the stablecoins in Curve Finance?
Curve Finance supports a variety of stablecoins in its liquidity pools. Some of the stablecoins associated with Curve Finance include DAI, USDC, USDT, FRAX, and TUSD. Additionally, Curve Finance has introduced crvUSD, an overcollateralized stablecoin backed by crypto assets, as part of its native stablecoin offerings on the mainnet.
What is Curve Finance?
Curve Finance is a decentralized exchange (DEX) built on the Ethereum network, designed to facilitate efficient trading between cryptocurrencies. Unlike traditional exchanges that match buyers and sellers, Curve utilizes liquidity pools to enable token swaps with low fees and minimal slippage. It operates as an automated market maker (AMM) platform, providing a decentralized alternative for users to exchange various tokens, particularly stablecoins.
When did Curve Finance launch?
Curve Finance was launched in January 2020, as a decentralized exchange (DEX) designed to facilitate efficient trading between stablecoins with a focus on low slippage and fees.
How safe is Curve Finance?
Curve Finance is generally considered safe, with several reviews highlighting its reputation as one of the most trusted decentralized exchanges in the decentralized finance (DeFi) space. The platform has implemented core smart contracts and security measures to simplify the trading of stablecoins, ensuring a legitimate and secure decentralized exchange experience.
