The Ethereum network has seen the successful introduction of curveUSD, an algorithmic stablecoin powered by the Decentralized Finance Protocol CurveDAO. This marks a significant advancement for the DeFi space as a whole.
Following its launch on Ethereum main net, DeFi protocol Curve Finance has now officially minted more than $22 million worth of the crvUSD algorithmic US dollar-backed stablecoin. This newly released token is an integral part of the Curve Finance project, providing users with a digital representation of traditional fiat currency.
As of May 4th, analysis from Etherscan’s blockchain explorer tool reveals that in the past eight hours, a contract has created over $22 million dollars in crvUSD. Strikingly, the first five minutes were responsible for generating an astounding $20 million of this total amount.
In a key development, crvUSD has now been deployed to Ethereum’s network. Although this algorithmic stablecoin is not yet accessible to everyone, its availability will be broadened once it has been integrated with Curve’s front-end user interface on its official website. This integration promises an exciting step forward in bringing public access to this stablecoin.
Inquiries from the public concerning the launch date of Curve Finance’s stablecoin were answered in their official Telegram chat recently – an admin said it would be out “soon.
Curve Finance is currently making waves in the DeFi world, boasting a massive total value locked (TVL) of $4.4 billion according to data from DeFiLlama.
The month of May 2022 saw a significant blow to the cryptocurrency industry, when the TerraUSD (UST) stablecoin unraveled its peg, and the value of its counterpart token, later renamed Terra Classic (LUNC), dropped by an astonishing 99%. This catastrophic event was triggered by a group of calculating traders who brought down UST’s intricate market-balancing apparatus. Algorithmic stablecoins were harshly scrutinized in light of this disaster.
In contrast to the no longer-existent UST, crvUSD by Curver Finance has a design similar to MakerDAO’s stablecoin. The whitepaper on crvUSD explains that it will work as a “collateralized-debt-position” in which users need to put down collateral before they can gain access to a loan in crvUSD. At this point, there is still no official info on what asset should be used for the purpose of collateral.
On July 21, 2022, mrblocktw of the esteemed team at Curves took to social media with a tweet that unveiled their plan to release an algorithmic stablecoin.
At the ReDeFine Tomorrow Web3 summit, Michael Egorov – founder of Curve – announced that the new stablecoin would be overcollateralized. This confirmation saw an immediate effect on the price of the protocol’s native token, CRV. Market analysis from TradingView found it had spiked around 7% and was currently trading at $0.96.
