The crvUSD stablecoin will help strengthen Curve's DeFi ecosystem.
The developers of the decentralized exchange Curve Finance have published the official code and whitepaper of their New stablecoin, called crvUSD, which will be released soon.
El source code and whitepaper have been published on the Github developer repository. As of now, there is no official announcement from Curve Finance, although the documents point to the dollar-pegged stablecoin project It's almost ready and ready to be launched.
Even though the appearance of the documents on GitHub has been sudden, Michael Egorov, founder of Curve Finance, spoke of the possibility of developing a stablecoin for the first time in July, so it was something that the community was waiting.
What will crvUSD be like?
The whitepaper published on Github has been written by Michael Egorov, founder of Curve Finance. It details that crvUSD will have a similar functionality to that of DAI in MakerDAO. In the same way that DAICurve's stablecoin will be overcollateralized by different cryptocurrencies.
The whitepaper also notes that users will be able to mint the stablecoin depositing excess collateral in the form of cryptocurrency loans into a reserve, a mechanism called “Collateralized Debt Position” or CDP.
La stablecoin It will also be based on a New algorithm called Lending-Liquidation AMM or LLAMA, which will be responsible for continuously liquidating and selling the deposited collateral to better manage the potential risks of collateralization.
The stablecoin will function as addon to Curve DAO tokens (CRV) native to the platform, to foster the growth of Curve’s DeFi ecosystem.
What is Curve Finance?
CurveFinance is a decentralized exchange focused on offering trades between different stablecoins.
In this sense, it is used especially by stablecoin traders and liquidity providers looking for a slippage (difference between the order price and the execution price of the operation) minimum, thereby reducing losses to a minimum.
Curve Finance offers a Simple interface and use of smart contracts to offer a stable and secure system. Curve Finance offers support for the main stablecoins on the market such as DAI, USDC, USDT, PAX or BUSD among others.
Curve Finance works by using liquidity pools, which in this case store large amounts of two stablecoin pairs.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
