Curve, the fourth DeFi protocol with the most funds locked in the Ethereum network, is one step away from having its own stablecoin. We are talking about crvUSD, a decentralized stable cryptocurrency that works through an overcollateralized lending system.
The team behind decentralized exchange (DEX) Curve Finance confirmed the implementation of the smart contract for the creation of crvUSD on the Ethereum mainnet.
However, they clarify that the launch is not yet finalized. First of all, because they will have to re-implement the smart contract this Thursday, May 4, for reasons that were not specified.
Moreover, Curve had already reported that it is working on the user interface and that is an aspect that still remains to be finalized.
This new stablecoin will be backed by assets that exceed in value the amount of crvUSD issued. It is a similar mechanism to that used by MakerDAO’s DAI stablecoin.
Curve’s cryptocurrency will be backed by assets such as ether (ETH), USD Coin (USDC), liquid staking derivatives such as Frax’s sfrxETH and liquidity tokens from stablecoin pools.
Initially, the Curve stablecoin will be used specifically within the Curve Finance platform, although there is the possibility that other protocols and centralized exchanges will list it in the future.
Curve, a major player in DeFi
The arrival of crvUSD on Ethereum represents a decentralized alternative to centralized stablecoins, such as Tether (USDT) and USDC, which currently dominate the stablecoin market.
In this sense, the new stablecoin is likely to gain a market share in a constantly growing sector such as DeFi. The assumption is due to Curve’s relevance in this field.
With support for 12 networks and a total locked value (TVL) of USD 4.41 billion, it is the fourth largest protocol in the field.
On the day of May 3, when the implementation of its smart contract became known, CRV had an appreciation of approximately 10% of its value.
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