Curve’s stablecoin between large size – Curve Finance is an emblematic protocol of the decentralized finance (DeFi). After announcing work on the development of a stablecoin crvUSDthey are Ethereum deployment just announced.
crvUSD: Curve’s over-collateralized stablecoin
In November of December, I will protocol Curve had unveiled the code as well as the whitepaper of the crvUSD, they are home stablecoin. In practice, crvUSD is a over-collateralized stablecoin by cryptocurrencies whose price is indexed to the American dollar. Curve controls are offered through a creation and destruction mechanism.
Users cannot mint crvUSD by depositing cryptos as collateral in a smart contract. This creates a Collateralized Debt Position (CDP). When the borrower closes out their debt position to collect the collateral, Curve destroys (burns) the tokens.
However, crvUSD stands out from its competitors thanks to their son settlement mechanismappealed CALLS. This constantly rebalances users’ collateral according to fluctuations in the price of cryptocurrencies.
Also, if the value of the collateral digital asset exceeds the liquidation threshold, the system gradually transforms these assets into crvUSD. When the value of the asset recovers, the protocol reverses the process, reintegrating the crvUSD back into the original form of collateral assets in a mechanism called de-liquidation.
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Deployment of the Curve stablecoin on Ethereum
You May 3the Curve teams announced are mainnet deployment of Ethereum. The developers have therefore deployed the smart contracts that allow the stablecoin to work.
“As many thought, the rollout of crvUSD smart contracts has taken place. It’s not finalized yet, as the UI needs to be rolled out as well. Stay tuned! »
However, Curve teams did not finally roll out the user interface (UI) allowing users to easily interact with the smart contract.
After the donations collected by Etherscan, five separate transactions were created $20 million in crvUSD tokens. Subsequently, the Curve team used crvUSD for the first time as part of a ready. Indeed, an address belonging to the Curve team took out a loan of1 million crvUSD by depositing 1.8 million frxETH, a derivative of ETH.
This new type of stablecoin could well pave the way for new innovations. Indeed, over the past few years, we have witnessed the limitations of certain architectures. Examples include the collapse of the UST or, more recently, the Cash flow problems that USDC issuer Circle again faced.
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