Crypto

Curve does wonders with its new algorithmic stablecoin

Curve Finance is known to be a game changer in the DeFi world and the platform is reporting some good news today. Indeed, with the imminent release of its algorithmic stablecoin, things could change as the platform creates its own stablecoin on its own terms. If you are used to making payments on this platform, expect to discover some new features soon.

Curve stablecoin code released

Mikhail Egorov, the founder of Curve, announced this in July, and finally! Indeed, an algorithmic stablecoin known as crvUSD by Curve was recently released on GitHub. It is a decentralized stablecoin backed by various cryptocurrencies such as Maker’s DAI.

Apparently the white paper was published at the same time, and according to what is contained in this white paper, crvUSD can be minted. To do this, simply participate in the famous overcollateral by depositing cryptocurrencies to the Curve wallet. Here we encounter a mechanism called the AMM lending-liquidation algorithm.

The founder of Curve then explained that this created mechanism will be able to solve various problems that algorithmic stablecoins often face. Who knows, maybe later Curve Finance will become a crypto bank.

A few words about the CRV token and crvUSD

While the CRV token is already circulating in the market, crvUSD has just joined it after its public announcement. At the moment we don’t have an official launch date yet, but we do know that unlike stablecoins like USDT or USDC, crvUSD will not be backed by real money. As such, this algorithmic stablecoin will not be affected by market volatility. Note that crvUSD will keep pace with USDT or USDC.

Currently, the CRV token serves as a reward for users who contribute liquidity to Curve, as well as a platform governance token. In addition, Curve uses cToken or Ytoken assets for lending and market building as a liquidity pool, and this ensures that the assets will always work. Thus, it is possible to deposit simple stablecoins, which will be converted into cToken or yToken. Either way, Curve can do wonders with their new stablecoin.

Although Curve Finance is not yet at the level of Binance, the situation may gradually improve. It’s already a great thing to offer a stablecoin that works differently from others; it remains only to wait for the moment when Curve Finance releases its famous crvUSD.

Annael

Do you know the BFF expression? Best friends forever? Well, I’m Annaelle, Victoria’s best friend. Passionate about cryptography myself, I came to give him a helping hand on his blog… by lending him my pen 🙂

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