Curve Finance $22M of Algo Stablecoin - The Ethereum mainnet has seen the introduction of the native algorithmic U.S. dollar-pegged stablecoin known a
Curve Finance $22M of Algo Stablecoin – The Ethereum mainnet has seen the introduction of the native algorithmic U.S. dollar-pegged stablecoin known as “crvUSD” via DeFi protocol Curve Finance, which has already generated more than $22 million in crvUSD.
The contract has generated more than $22 million worth of crvUSD in the last 8 hours, with $20 million of that amount generated in the first 5 minutes, according to statistics from blockchain explorer Etherscan.
An important step toward the public release of the algorithmic stablecoin has been taken with the deployment of crvUSD on the Ethereum network. Notably, until integration with Curve’s front-end user interface on its official website, the stablecoin is still inaccessible to the general public.
When asked when the stablecoin would be made available to the general public in the official Curve Finance Telegram group, an admin responded, “Soon.”
As many figured – deployment of crvUSD smart contracts has happened!
This is not finalized yet because UI also needs to be deployed. Stay tuned!
— Curve Finance (@CurveFinance) May 3, 2023
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Curve Finance Witnesses Minting
According to information from DeFiLlama, Curve Finance is one of the biggest DeFi protocols in the market as of the time of publication, with about $4.4 billion in total value locked (TVL).
Following the collapse of the Terra ecosystem in May 2022, when the TerraUSD (UST) stablecoin lost its peg and the value of its sister token Terra—later renamed Terra Classic (LUNC)—plummeted by more than 99%, algorithmic stablecoins came under fire from all corners of the industry. A complicated arbitrage mechanism that kept the value of UST high was ultimately destroyed by a team of experienced traders.
In contrast to the now-defunct UST, Curve’s crvUSD uses a design like that of MakerDAO’s stablecoin. The crvUSD whitepaper states that crvUSD will operate as a “collateralized-debt-position” stablecoin, requiring users to deposit security before obtaining a loan in crvUSD. Curve Finance has yet to identify the preferred asset to be used as collateral.
Not only Curve but other DeFi protocols are aiming to launch algorithmic stablecoins. In February of this year, rival protocol Aave (AAVE) published a testnet version of their “native decentralized, collateral-backed stablecoin” known as GHO.
A Curve Team member named @mrblocktw originally revealed Curve’s intention to launch an algorithmic stablecoin in a tweet on July 21, 2022.
you know you know
curve – stablecoin incoming 👀$CRV 🚀 #stablecoinWAR pic.twitter.com/sYg13WRLYz
— 區塊先生 ⚠️ (rock #58) (@mrblocktw) July 21, 2022
At the ReDeFine Tomorrow Web3 summit later that day, Curve’s founder, Michael Egorov, confirmed that the stablecoin would be overcollateralized.
According to data from TradingView, the native Curve DAO (CRV) token of the protocol increased by almost 7% after the introduction of the new stablecoin. The current exchange rate for CRV is $0.96.