- Defi protocol Curve is one of the largest decentralized platforms.
- It will launch its own stablecoin named crvUSD in November 2023 and is marked as the most awaited stablecoin.
- crvUSD was minted worth $22 million in eight hours of which $20 million worth of crvUSD was minted in the first five minutes.
- But crvUSD will be facing high competition in the market as other Defi platforms also started making their stablecoins to attract users.
Decentralized Finance DeFi protocol curve finance brings its native stablecoin called crvUSD to immediate action. It was done on Wednesday afternoon on the Ethereum mainnet.
It has minted about $22 million worth crvUSD so far. Blockchain data on Etherscan clearly showed that more than $22 million worth of crvUSD were minted in the last eight hours and about $20 million worth of crvUSD were minted in the first five minutes.
The deployment of the crvUSD on the Ethereum network is considered to be a significant step towards the public release of an algorithmic stablecoin. But the stablecoin still remains inaccessible to general users as it is not integrated into Curve’s user interface.
While responding to a query in the official Curve Finance Telegram chat, it was asked when users could see the stablecoins accessible to the public, which claimed to be coming soon.
Curve Finance tweeted that crvUSD has been deployed. This is still not finalized as UI also needs to be deployed.
Curve finance is currently one of the largest DeFi protocols in the industry with $4.4 billion as Total Value Locked (TVL). Last year it started making its own dollar-pegged stablecoin.
In May 2022, after the collapse of the Terra ecosystem, when TerraUSD stablecoin lost its value, algorithmic stablecoin became the focal point of industry-wide criticism. UST’s value is maintained by a complex arbitrage mechanism which was eventually brought down by a group of traders.
The protocol’s governance token, CRV has reached 97 cents and is also up 7% for the day. This deployment is considered the major milestone as Curve’s long-awaited stablecoin is launched to the public.
But this doesn’t end here. Curve’s stablecoin will face heavy competition in the market from other Defi protocols. As almost all of them have started making their own stablecoins to attract users and increase interactivity.
How does Curve’s work?
crvUSD is a stablecoin that is backed by crypto assets and will be launched in November. The curve will follow a mint-and-burn mechanism similar to MakerDAO’s DAI and will control the supply of crvUSD.
crvUSD is unique from competitors because of its novel. Lending-liquidating algorithm, called LLAMA, which constantly rebalances users’ collateral as crypto prices fluctuate, according to the whitepaper.
The mechanism offers a smoother, continuous liquidation process as opposed to a single, drastic event. That sometimes causes turmoil and huge losses on lending protocols when cryptocurrency prices crash.