• Curve Finance’s DeFi Platform Takes First Steps Toward CrvUSD Stablecoin

  • According to the initial code shared by Curve Finance’s developers on Tuesday, the prominent stablecoin exchange program is nearing the debut of its native stablecoin, branded crvUSD.

    The code library will serve as an interface to the yet-to-be-deployed crvUSD smart contracts, and it will be the first step toward the eventual release of the highly anticipated tokens.

    According to developer docs, Curve uses smart contracts to provide an efficient way to swap stablecoins while retaining low costs and little slippage. Curve depositors get annual rates of up to 4% from one of the platform’s several pools, which holds approximately $5 billion in Ethereum-based tokens.

    Curve tokens (CRV) are offered as yield farming rewards to Curve Finance liquidity providers and can be converted into vote-escrowed CRV (veCRV). Users who hold veCRV can participate in platform governance, earn higher rewards and fees, and receive airdrops.

    Curve’s ambitions to deploy a dollar-denominated asset were initially made public in June. Last month, founder Michael Egorov announced the stablecoin, saying it was “probable” that crvUSD would be released in September.

    Meanwhile, several market participants have commented on the impact of crvUSD in the broader crypto ecosystem once it is released.

    “The crvUSD could be a very interesting development, as we haven’t yet seen a stablecoin that is issued by a major DEX,” (decentralized exchange) Daniel Zlotin, senior DeFi developer at Orbs, wrote in a Telegram message.

    “Connecting a stablecoin with a viable DeFi platform could open up some interesting possibilities in terms of new models (such as using LP tokens as part of the backing system),” Zlotin added, cautioning that there would “definitely be some challenges” in implementing such a concept.

    Others claimed that Curve’s own stablecoin will make the network even more liquid, ensuring long-term viability.

    “The approach that Curve chose will potentially make the liquidity more sustainable,” shared Alex Pipushev, founder of GTON Capital, in a Telegram message. “That’s a good experiment in pursuit of more reliable stablecoin models.”

    According to research, stablecoins are a big portion of the total crypto market, with over $153 billion in such tokens now in circulation.

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