Curve’s New crvUSD Stablecoin Deployed To Ethereum With $22 Million Minted
- Curve Finance has launched crvUSD, the widely awaited native stablecoin, on the Ethereum mainnet.
- The contract has earned more than $22 million in crvUSD in the last 8 hours, according to statistics from blockchain explorer Etherscan.
- The deployment is a significant step in bringing Curve’s long-awaited stablecoin to the public.
crvUSD, the much-anticipated stablecoin from the DeFi protocol Curve Finance, is now available on Ethereum.
On May 4, numerous cryptocurrency users noticed that Curve Finance had deployed the stablecoin crvUSD smart contract on the Ethereum mainnet, minting more than $22 million in crvUSD so far.
Despite the lack of a user interface, the contracts led DeFi degens to deposit $2 million into the protocol within a few hours.
At the time of writing, there were only 10 wallet addresses holding crvUSD, indicating that the stablecoin has yet to be incorporated into Curve and is not yet available to ordinary crypto users. Furthermore, the smart contract demonstrates that the only collateral currently supported by crvUSD is Frax’s frxETH.
The protocol was the name given to a crypto wallet when the first tokens were issued.
Arkham Intelligence’s Fi Team established a $1 million crvUSD loan using $1.8 million of frxETH, a form of ether (ETH) derivative token issued by DeFi protocol Frax Finance.
crvUSD is one of a new wave of decentralized stablecoins native to prominent DeFi protocols that are set to disrupt the industry. Curve users will be able to mint crvUSD against collateral assets put in the protocol, giving them access to liquidity while receiving an interest on their deposits.
The deployment is a significant step in bringing Curve’s long-awaited stablecoin to the public. Curve, one of the biggest decentralized markets specializing in stablecoins, stated last year that it has begun building its own dollar-pegged stablecoin.
According to the white paper for crvUSD, the stablecoin will use a revolutionary lending-liquidating AMM algorithm, or LLAMMA, to mitigate the consequences of liquidations on borrowers.
The protocol will progressively convert Ether collateral supporting crvUSD to stablecoins as its value approaches its liquidation price. The assets are then converted back to ETH when the price of ETH increases.
Curve is not the only DeFi protocol aiming to bring an algorithmic stablecoin to market. In February of this year, competitor protocol Aave (AAVE) published a testnet version of GHO, its native decentralized, collateral-backed stablecoin.
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