How Curve Finance [CRV] fixed its error, redeployed crvUSD stablecoin on Ethereum

• The Curve team finally launched its stablecoin after an earlier blunder.
• The crvUSD TVL recovered as social activity also increased.

After accidentally releasing a script for its stablecoin, Curve Finance [CRV] has redeployed it on the Ethereum [ETH] Mainnet. The Decentralized Exchange (DEX) whose focus is on stablecoin, confirmed this in its 4 May tweet.

Redeployment is complete, see the details here:https://t.co/iqCDvO402B

— Curve Finance (@CurveFinance) May 4, 2023

How much are 1,10,100, CRVs worth today?

On 3 May, the Curve Finance team announced the deployment of the smart contract of the crvUSD stablecoin on the second-largest blockchain. However, it got wind of the information that the operations were done in error. 

Revisiting the operation

Yieldebaran, a reallocation liquidity pool, notified the project of its mistake. Curve followed up with a peer review of its initial operation, and found the alert to be true.

The team quickly identified and resolved the issue by creating a new stablecoin contract. It also migrated funds from the old contract to the new one.

In 2022, Curve developed crvUSD as a Collateralized-Debt-Position (CDB). With the dollar-pegged asset, users have access to deposit collaterals like ETH and take a loan in crvUSD.

Interestingly, a user was involved in purchasing crvUSD from the Curve Liquidity Pool (LP) before the project observed the mistake. However, Curve publicly asked the user to reach out for a solution. 

Asking 0x38abab9766e0b27d2912718a884292b8E7eb2803 to DM for selling crvUSD (could be a bit inconvenient via the pool at the moment) https://t.co/6sRScktuP2

— Curve Finance (@CurveFinance) May 4, 2023

Following the back and forth of problem spots, and resolution, the crvUSD Total Value Locked (TVL) experienced ups and downs. The TVL examines the rate of deposits into smart contract pools within a project.

Of the downturn and rejuvenation

According to DeFiLlama, crvUSD’s TVL was almost $1.3 million at press time. But before then, the metric took a sharp dip to $6,788. This signaled how liquidity flow had ceased into the Curve pool amid the error.

Source: DeFiLlama

Although the TVL has now flatlined, the resurgence implies investors’ confidence in participation within the crvUSD ecosystem.

Meanwhile, Santiment showed that the development impacted crvUSD in terms of social activity. According to the on-chain analytic platform, the social volume of the stablecoin increased up until 4 May.

Realistic or not, here’s CRV’s market cap in ETH terms

The metric compiles the number of text documents linked to an asset on Twitter, Telegram, and Reddit posts. Like the social volume, the crvUSD social dominance also followed the same path. 

Social dominance measures the percentage of discussion around an asset on crypto platforms as against other cryptocurrencies in the top 100. Thus, this implied that the project had some level of hype around it especially as millions of it was minted.

Source: Santiment