Curve deploys its stablecoin crvUSD on the Ethereum mainnet


Curve’s stablecoin enters through the front door – Curve Finance is an emblematic protocol of the decentralized finance (DeFi). After announcing work on the development of a stablecoin crvUSDher deployment on Ethereum just announced.

crvUSD: Curve’s over-collateralized stablecoin

Last November, the protocol Curve had unveiled the code as well as the whitepaper of the crvUSD, its home stablecoin. In practice, crvUSD is a over-collateralized stablecoin by cryptocurrencies whose price is indexed to the American dollar. Curve controls its offering through a create and destroy mechanism.

Users can create (mint) crvUSD by depositing cryptos as collateral in a smart contract. This creates a Collateralized Debt Position (CDP). When the borrower closes out their debt position to collect the collateral, Curve destroys (burns) the tokens.

However, crvUSD stands out from its competitors thanks to its liquidation mechanismcalled LAMA. This constantly rebalances users’ collateral according to fluctuations in the price of cryptocurrencies.

Thus, if the value of the digital asset serving as collateral falls below the liquidation threshold, the system gradually transforms these assets into crvUSD. When the value of the asset recovers, the protocol reverses the process, reintegrating the crvUSD back into the original form of collateral assets in a mechanism called de-liquidation.

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Deployment of the Curve stablecoin on Ethereum

THE May 3the Curve teams announced its deployment on the mainnet of Ethereum. The developers have therefore deployed the smart contracts that allow the stablecoin to work.

Curve announces the rollout of crvUSD – Source: Twitter

“As many thought, the rollout of crvUSD smart contracts has happened. It’s not finalized yet, as the UI needs to be rolled out as well. Stay tuned ! »

Declaration of Curve

However, Curve teams have not yet deployed the user interface (UI) allowing users to easily interact with the smart contract.

According to data collected by Etherscan, five separate transactions created $20 million in crvUSD tokens. Soon after, the Curve team used crvUSD for the first time as part of a ready. Indeed, an address belonging to the Curve team took out a loan of1 million crvUSD by depositing 1.8 million frxETH, a derivative of ETH.

This new type of stablecoin could well pave the way for new innovations. Indeed, over the past few years, we have witnessed the limitations of certain architectures. Examples include the collapse of the UST or, more recently, the cash flow issues that Circle, the issuer of USDC, has experienced.

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