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crvUSD Stablecoin From Curve Finance Launched On Ethereum

Summary:

  • Smart contracts for Curve Finance’s crvUSD stablecoin went live on Ethereum’s mainnet, the team shared via a Twitter update on May 3.
  • “This is not finalized yet because UI also needs to be deployed. Stay tuned!” said crvUSD developers promising a user interface for the stablecoin.
  • crvUSD enters a highly competitive Ethereum stablecoin market with names like DAI, USDT, and USDC.

Ethereum’s stablecoin market welcomes a new contender built by the developers of decentralized trading venue Curve Finance.

On May 3, the DEX developers confirmed that smart contracts for crvUSD were deployed on Ethereum’s mainnet. The team minted 20 million crvUSD tokens in total. Users can view this stablecoin supply on Etherscan.

“This is not finalized yet because UI also needs to be deployed. Stay tuned!” said crvUSD developers promising to roll out a user interface for the stablecoin.

https://twitter.com/CurveFinance/status/1653872243556986880?ref_src=twsrc%5Etfw” rel=”nofollow noopener

Curve Finance’s Mechanics For Its Stablecoin

Curve Finance designed its crvUSD stablecoin as a U.S. dollar-pegged token with an over-collateralized structure. This means that crvUSD can only be minted by posting collateral in supported cryptocurrencies. Minters must provide excess collateral against the amount of crvUSD tokens that they wish to mint.

The design leverages other crypto assets rather than fiat currencies, a design similar to Maker’s DAI stablecoin.

Opting for an over-collateralized asset structure comes with its risk. The Curve Finance team implemented a fresh blockchain algorithm called Lending-Liquidating AMM or LLAMMA to mitigate this risk. LLAMMA achieves this by liquidating and depositing crypto assets as collateral. Developers automated the process to optimize crvUSD’s mechanics.

New Stablecoin On The Block

crvUSD 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.

Stablecoin Ranking by CoinMarketCap
Ryan Helton

A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

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