Curve Finance Now Supports Users To Mint crvUSSD By Using stETH
- A proposal to enable crvUSD minting using stETH was approved by the whole Curve DAO community.
- Users may put up their stETH holdings as collateral, and the system will mint crvUSD automatically.
- They must pay a 6% borrowing rate and will be liquidated immediately if the value of the loaned stETH falls below the targeted $1 peg value of crvUSD.
In a vote that concluded Thursday morning, 100% of Curve DAO community members approved a proposal to enable curve USD (crvUSD) minting using Staked Ethereum (stETH).
Holders of stETH may now utilize their tokens to create crvUSD, a decentralized stablecoin created via the stablecoin exchanging system Curve Finance.
As of Thursday, the maximum amount of cvrUSD that may be issued using stETH as collateral is $150 million.
Users may put up their stETH holdings as collateral, and Curve will automatically create crvUSD, the worth of which will be a percentage of the stETH value. They must now pay a 6% borrowing rate and will be liquidated immediately if the value of the loaned stETH falls below the targeted $1 peg value of crvUSD.
The protocol launched its long-awaited crvUSD stablecoin on the Ethereum mainnet last month after announcing plans to launch a dollar-pegged stablecoin in June. The token is backed by a basket of tokens and regulated by smart contracts, guaranteeing it is always fully supported in an attempt to avoid a repetition of the TerraUSD debacle.
Curve Finance is a DeFi protocol that allows for the decentralized exchange (DEX) of stablecoins inside Ethereum. In turn, Ethereum is a software particularly intended to permit the efficient exchange of cryptocurrencies of the same value. Moreover, it provides substantial yearly interest rates on crypto funds deposited by Curve Finance.
The mechanism works in the same way as Uniswap or other DEX systems that employ liquidity pools. The primary distinction is how the pricing function here and the influence that this protocol has on the investors’ earnings. Curve Finance employs a different economic invariant, known as the StableSwap invariant, than other AMMs. This works on a weighted system of curves, pricing, and dynamic slippage.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu