The decentralized finance (DeFi) protocol Curve Finance has launched its native US dollar algorithmic stablecoin on the Ethereum mainnet, minting over $22 million of the crvUSD token so far.
According to data from blockchain explorer Etherscan, at the time of writing this article on May 4, the contract had minted over $22 million in crvUSD in the last eight hours, of which 20 million was minted in the first five minutes.
The deployment of crvUSD on the Ethereum network is a significant step towards the public launch of the algorithmic stablecoin. In particular, the stablecoin remains inaccessible to general users.pending integration with Curve’s front-end UI on its official website.
In response to a question on the official Curve Finance Telegram chat about When could users expect to see the stablecoin released to the public, one admin claimed it would be coming “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
As many imagined, the deployment of crvUSD smart contracts has happened! This is not finalized yet because the user interface also needs to be rendered. Pay attention!
At the time of publication of this article, Curve Finance is one of the largest DeFi protocols in the industry, with approximately $4.4 billion in total value locked (TVL), according to data from DeFiLlama..
Algorithmic stablecoins became the focus of industry-wide criticism following the collapse of the Terra ecosystem in May 2022.when the stablecoin TerraUSD (UST) lost its peg and the value of its sister token Terra – later renamed Terra Classic (LUNC) – plummeted by more than 99%. The value of UST was held by a complex arbitrage mechanism that was eventually shot down by a group of sophisticated traders..
Curve’s crvUSD differs from the defunct UST, using a design similar to MakerDAO’s DAI (DAI) stablecoin (MKR). According to the crvUSD whitepaper, crvUSD will function as a “collateralized debt position” stablecoin, which means that users must post collateral to obtain a loan in crvUSD. Curve Finance has not yet specified the preferred asset as collateral.
Curve is not the only DeFi protocol with its sights set on bringing an algorithmic stablecoin to market. The competing protocol Aave (AAVE) launched a test version of its “collateral-backed decentralized native stablecoin,” dubbed GHO, back in February..
Curve’s plan to launch an algorithmic stablecoin was first announced by Curve team member mrblocktw 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
you know you know
A curve stablecoin is on the way. $CRV #stablecoinWAR pic.twitter.com/sYg13WRLYz
That same day, Curve founder Michael Egorov confirmed that the stablecoin would be overcollateralized at the ReDeFine Tomorrow Web3 Summit.
Following the launch of the new stablecoin, the native token of the Curve DAO protocol (CRV) rose approximately 7%, according to data from TradingView. CRV is currently changing hands at $0.96.
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