Curve Finance Launches its Algorithmic Stablecoin crvUSD on Ethereum Network

Key Highlights :

1. Curve Finance has launched its native algorithmic U.S. dollar-pegged stablecoin, dubbed “crvUSD” on the Ethereum mainnet — minting more than $22 million worth of the crvUSD so far.

2. According to data from blockchain explorer Etherscan, the contract has minted more than $22 million worth of crvUSD in the past 8 hours, with $20 million of that amount minted within the first 5 minutes.

3. The stablecoin remains inaccessible to general users, pending integration with Curve’s front-end user interface on its official website.

4. Responding to a query about when users could expect to see the stablecoin released to the public in the official Curve Finance Telegram chat , an admin claimed it will be coming “soon.”

5. As many figured - deployment of crvUSD smart contracts has happened! This is not finalized yet because UI also needs to be deployed. Stay tuned!

     The decentralized finance (DeFi) space is abuzz with the news that Curve Finance has successfully launched its algorithmic U.S. dollar-pegged stablecoin, crvUSD, on the Ethereum mainnet. The launch of the stablecoin marks a significant step forward for the DeFi protocol, with more than $22 million worth of crvUSD minted in the past 8 hours.

     The launch of crvUSD on the Ethereum network is a major milestone for Curve Finance, which is now one of the largest DeFi protocols in the industry, with roughly $4.4 billion in total value locked (TVL). The algorithmic stablecoin is currently inaccessible to general users, pending integration with Curve’s front-end user interface on its official website.

     The crvUSD stablecoin is an algorithmic stablecoin similar to MakerDAO’s (MKR) DAI (DAI) stablecoin. According to the crvUSD whitepaper, crvUSD will function as a "collateralized-debt-position" stablecoin, meaning that users must deposit collateral in order to take out a loan in crvUSD. The preferred asset for use as collateral has not yet been specified by Curve Finance.

     The launch of the stablecoin is a welcome development for the DeFi space, which has been rocked by the collapse of the TerraUSD (UST) stablecoin earlier this year. UST lost its peg and the value of its sister token Terra — later renamed Terra Classic (LUNC) — plunged by more than 99%. UST's value was maintained by a complex arbitrage mechanism that was eventually brought down by a group of sophisticated traders.

     Curve’s crvUSD differs from the now-defunct UST, by utilizing a similar design similar to MakerDAO’s (MKR) DAI (DAI) stablecoin. The launch of crvUSD on the Ethereum network is a major step towards the public release of the algorithmic stablecoin and will provide a much-needed alternative to UST.

     Following the launch of the new stablecoin, the protocol’s native Curve DAO (CRV) token spiked approximately 7% according to data from TradingView. CRV is currently changings hands for $0.96.

     Curve Finance’s launch of its algorithmic stablecoin crvUSD is an important milestone for the DeFi space, providing users with a much-needed alternative to the now-defunct UST. As the protocol moves closer to releasing the stablecoin to the public, the DeFi space will be watching closely to see how the new stablecoin fares in the market.

Continue Reading at Source : cointelegraph