- DeFi protocol Curve Finance has launched its native algorithmic USD-pegged stablecoin on the Ethereum mainnet.
- Curve Finance is one of the largest DeFi protocols, with around $4.4 billion in TVL.
Decentralized finance (DeFi) protocol Curve Finance has launched its native algorithmic USD-pegged stablecoin on Ethereum mainnet, minting more than $22 million worth of crvUSD tokens thus far.
As per the latest data available on the blockchain explorer Etherscan, the contract had minted more than $22 million worth of crvUSD since its launch on 3 April. In fact, tokens worth $20 million had been minted within the first five minutes.
One of Curve Team members first stated Curve’s plan to release an algorithmic stablecoin on Twitter in July last year.
The deployment of crvUSD on the Ethereum network is a key step toward the algorithmic stablecoin’s public release. Notably, the stablecoin is still inaccessible to general users as Curve’s front-end user interface is yet to be integrated into its official website.
In response to a question on the official Curve Finance Telegram channel, an admin informed that the stablecoin would soon be available to the public.
According to DeFiLlama data, Curve Finance is one of the largest DeFi protocols, with around $4.4 billion in total value locked (TVL).
Curve is not the only DeFi protocol aiming to bring an algorithmic stablecoin to market. Aave (AAVE), another DeFi protocol, issued a testnet version of its “native decentralized, collateral-backed stablecoin,” named GHO, in February.
Coming out of Terra’s shadow
Curve’s crvUSD is distinct from the now-defunct Terra Luna stablecoin (UST) in that it employs a design akin to MakerDAO’s DAI stablecoin.
According to the crvUSD whitepaper, crvUSD will function as a “collateralized-debt-position” stablecoin, which means that in order to take out a loan in crvUSD, users must deposit collateral. Curve Finance has not yet identified the preferred asset for use as collateral.
Following the launch of the new stablecoin, the protocol’s native Curve DAO (CRV) token increased by approximately 7%. At press time, it was trading at $0.95.
