Curve Finance (CRV) is a decentralized cryptocurrency exchange (DEX) platform focused on trading stablecoins and of wrapped tokens. The Automated Market Maker (AMM) already has its own governance token. Last month at the REDeFiNE TOMORROW 2022 conference, the idea that Curve was preparing to introduce its stablecoin emerged. According to a senior project manager, things are moving in that direction.
Curve Finance’s stablecoin is coming
Yesterday, Michael Egorov, the founder of Curve Finance, confided in the community on the chat channel of the exchange. According to him, the crvUSD, the stablecoin from Curve Finance, could launch next month. In fact, when asked if it was possible that this stablecoin be launched in September, Egorov replied in the affirmative.
For now, there is not enough information about crvUSD, other than the fact that it will be collateralized. This means that it will be backed by assets worth more than the value of the issued tokens.
In the hours following the announcement, the price of CRV increased by 12%. It then fell slightly to $1.13. This still corresponds to an increase of 7.76% in the last 24 hours.
A new trend in the DeFi ecosystem
The creation of stablecoin of Curve is not an isolated case. Last month, the DAO of DeFi giant Aave approved a proposal to develop the stablecoin of the protocol. That said, projects such as Waves, Tron and Near are also part of this approach. It seems that DeFi protocols see it as an alternative to reduce their exposure to stablecoins centralized.
Indeed, the measures recently taken against Tornado Cash, which led to the freezing of several million dollars in stablecoins centralised, have given rise to a certain mistrust of this asset class. As a result, investors and protocols are increasingly turning to stablecoins decentralized.
Currently, Curve, one of the largest DeFi protocols in terms of total value locked (TVL). He takes 4th place in the DeFillama ranking with a TVL of $5.85 billion. That’s down 76% from the DEX’s peak of $24.3 billion last January.
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