Decentralized finance (DeFi) protocol Curve Finance has launched its native algorithmic U.S. dollar-pegged stablecoin, dubbed \u201ccrvUSD\u201d on the Ethereum mainnet \u2014 minting more than $22 million worth of the crvUSD so far.<\/p>\n
According to data<\/a> from blockchain explorer Etherscan, the contract has minted more than $22 million worth of crvUSD in the past 8 hours, with $20 million of that amount minted within the first 5 minutes. <\/p>\n The deployment of crvUSD on the Ethereum network is a significant step towards the public release of the algorithmic stablecoin. Notably, the stablecoin remains inaccessible to general users, pending integration with Curve\u2019s front-end user interface on its official website. <\/p>\n Responding to a query about when users could expect to see the stablecoin released to the public in the official Curve Finance Telegram chat<\/a>, an admin claimed it will be coming \u201csoon.\u201d<\/p>\n As many figured – deployment of crvUSD smart contracts has happened!<\/p>\n This is not finalized yet because UI also needs to be deployed. Stay tuned!<\/p>\n \u2014 Curve Finance (@CurveFinance) May 3, 2023<\/a><\/p><\/blockquote>\n At the time of publication, Curve Finance is one of the largest DeFi protocols in the industry, with roughly $4.4 billion in total value locked (TVL), according to data<\/a> from DeFiLlama. <\/p>\n Algorithmic stablecoins became the focal point of industry-wide criticism following the collapse of the Terra<\/a>\u00a0ecosystem in May 2022 when the TerraUSD (UST<\/a>) stablecoin lost its peg and the value of its sister token Terra \u2014 later renamed Terra Classic (LUNC<\/a>) \u2014 plunged by more than 99%. UST’s value was maintained by a complex arbitrage mechanism that was eventually brought down by a group of sophisticated traders.\u00a0<\/p>\n Curve\u2019s crvUSD differs from the now-defunct UST, by utilizing a similar design similar to MakerDAO\u2019s (MKR<\/a>) DAI (DAI<\/a>) stablecoin. According to the crvUSD whitepaper<\/a>, crvUSD will function as a “collateralized-debt-position” stablecoin, meaning that users must deposit collateral in order to take out a loan in crvUSD. The preferred asset for use as collateral has not yet been specified by Curve Finance. <\/p>\n Curve isn\u2019t the only DeFi protocol with its sights set on bringing an algorithmic stablecoin to market. Competitor protocol Aave (AAVE) released<\/a> a testnet version of its \u201cnative decentralized, collateral-backed stablecoin\u201d dubbed GHO in February this year. <\/p>\n Related: <\/em><\/strong>DeFi driving zkSync growth as 1inch deploys on Ethereum layer-2 scaling platform<\/em><\/strong><\/a><\/p>\n Curve\u2019s plan to release an algorithmic stablecoin was first announced by Curve Team member @mrblocktw in a Twitter post on July 21, 2022. <\/p>\n you know you know<\/p>\n curve – stablecoin incoming $CRV<\/a> #stablecoinWAR<\/a> pic.twitter.com\/sYg13WRLYz<\/a><\/p>\n \u2014 \u5340\u584a\u5148\u751f ⚠️ (rock #58) (@mrblocktw) July 21, 2022<\/a><\/p><\/blockquote>\n Later the same day, Curve\u2019s founder, Michael Egorov confirmed<\/a> that the stablecoin would be overcollateralized at the ReDeFine Tomorrow Web3 summit.<\/p>\n Following the launch of the new stablecoin, the protocol\u2019s native Curve DAO (CRV) token spiked approximately 7% according to data<\/a> from TradingView. CRV is currently changings hands for $0.96.<\/p>\n Magazine: <\/em><\/strong>ZK-rollups are \u2018the endgame\u2019 for scaling blockchains, Polygon Miden founder<\/em><\/strong><\/a><\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-05\/93d0e12c-0bff-4d21-aa07-8a31ef643c3d.PNG\")
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