Curve Finance might launch a decentralized stablecoin called crvUSD next month, according to the decentralized protocol’s founder, Michael Egorov. 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 own 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. Curve was caught in the middle of it all since it specializes in stablecoin swaps. Its total value dropped from a peak of $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 its much-demanded stablecoin, 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.