Defi Protocol Curve Finance to Launch ‘Crvusd’ Stablecoin
- The stablecoins code was released into GitHub by its developers.
- Over-collateralization ensures the new currency will maintain its $1 peg in the market.
With the DeFi protocol Curve Finance, a new dollar-pegged stablecoin may soon be available. On Tuesday, the stablecoins code was released into GitHub by its developers. The new code demonstrates numerous smart contract features for the new over-collateralized stablecoin, however, details are still few.
Michael Egerov, the protocol’s founder, verified the existence of the Curve dollar (crvUSD) during a Web3 event in July. Curve’s greenback will be supported by a cryptocurrency treasury. It easily exceeds the entire value of the crvUSD tokens in circulation. Especially In contrast to centralized stablecoins like Circle’s USDC and Tether’s USDT, which are backed by physical cash and assets. Over-collateralization ensures that the new currency will maintain its $1 peg in the market.
Multiple Stablecoin Coming Ahead
The Maker DAI is one of the most recognized over-collateralized stablecoins. Aave recently announced the launch of its new stablecoin, dubbed GHO.
1/ Calling all GHOsts
We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.
Read more below and discuss your thoughts for the snapshot (coming soon)!https://t.co/P7tHl9LbBe
— Aave (@AaveAave) July 7, 2022
To authorize the introduction of a new over-collateralized stablecoin dubbed GHO, the Decentralized Autonomous Organization (DAO) regulating the lending and borrowing protocol recently conducted a referendum.
Furthermore, almost everyone in the community (99.9%) agreed with the GHO idea, and they put up half a million AAVE tokens as collateral. With the use of smart contracts and the Ethereum blockchain, Curve Finance facilitates the trading of stablecoins at low transaction costs and with little slippage.
Staking cryptocurrency in one of the protocol’s liquidity pools, which together hold $5.49 billion, earns users yearly payouts. The Curve frontend was hacked last month. A little over 327 Ethereum (at the time valued $570,000) were stolen and routed to the FixedFloat crypto exchange for laundering.
Of the stolen assets, FixedFloat was able to freeze 112 Ethereum on the day of the incident. Moreover, it was stated a few days later by Binance CEO Changpeng “CZ” Zhao that the exchange has frozen 83% of the assets, totaling $450,000.
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