Crypto News

Curve Finance launches stablecoin crvUSD on Ethereum, boosting DeFi capabilities

Published by
Nonhlanhla P Dube
  • Curve Finance, a decentralized exchange (DEX), has deployed the smart contract for crvUSD, a highly-anticipated stablecoin that is over-collateralized and backed by assets such as USDC, Ethereum, liquid staking derivatives, and liquidity provision tokens of stablecoin pools.
  • The crvUSD stablecoin will facilitate cheap swaps between stablecoins and other fixed-priced assets such as derivatives of Ethereum, making it an attractive option for users looking to engage in decentralized finance (DeFi).
  • Curve Finance founder Michael Egorov executed the first crvUSD loan worth $1 million against $1.8 million worth of sfrxETH as collateral, indicating early interest in the new stablecoin.

Curve Finance, a leading decentralized finance (DeFi) platform, has finally deployed its highly-anticipated stablecoin, crvUSD, on Ethereum. Though the Curve team has already deployed the smart contract for crvUSD, users are still waiting on a web interface.

According to a recent tweet from the Curve Finance team, “As many figured—deployment of crvUSD smart contracts has happened! This is not finalized yet because UI also needs to be deployed. Stay tuned!”

Curve Finance was launched during the DeFi summer of 2020 and is a stablecoin-centric decentralized exchange (DEX) that facilitates cheap swaps between stablecoins and other fixed-priced assets such as derivatives of Ethereum. It’s the second-largest DEX by volume after Uniswap.

CrvUSD is an over-collateralized stablecoin backed by assets like USDC, Ethereum, liquid staking derivatives like Frax’s sfrxETH, and liquidity provision tokens of stablecoin pools. Currently, only borrowing against Frax’s sfrxETH is enabled. The sfrxETH token represents the ETH staked via Frax Finance and accrues the staking yield from the Frax ETH validators.

Curve Finance founder Michael Egorov executed the first crvUSD loan worth $1 million against $1.8 million worth of sfrxETH as collateral. Another Ethereum user borrowed 5,000 crvUSD against 3.56 sfrxETH, worth around $6,780.

With the deployment of crvUSD, Curve Finance has added another powerful tool to its already impressive lineup of DeFi products. By facilitating cheap swaps between stablecoins and other fixed-priced assets, Curve Finance has become a critical component of the DeFi ecosystem.

DeFi has become increasingly popular in South Africa as more investors seek ways to earn yield on their crypto holdings. With its focus on stablecoins and other fixed-priced assets, Curve Finance is well-positioned to capture a significant share of the South African DeFi market.

The deployment of crvUSD on Ethereum is a significant milestone for Curve Finance and the broader DeFi ecosystem. As DeFi continues to grow in popularity, it’s clear that platforms like Curve Finance will play an increasingly important role in the future of finance.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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