BCGAME - Free 5BTC Daily Bonus!Decentralized finance (DeFi) protocol Curve Finance announced on November 13 the launch of a new stablecoin called “Savings crvUSD” (scrvUSD).
“CurveDAO, the leading decentralized exchange (DEX) for trading equivalent assets, creator of the LLAMMA liquidation protection algorithm and the crvUSD stablecoin, has launched the crvUSD (scrvUSD) Savings,” it wrote in its official announcement.
The new stablecoin aims to offer low-risk returns to users, while also improving the scalability and reach of Curve’s underlying stablecoin, crvUSD.
“This new savings module is set to be the engine for scaling crvUSD, the stablecoin issued by Curve, by enabling market participants to directly engage with its monetary policy. Developed in partnership with Yearn Finance and utilizing Yearn’s custom V3 Vaults, scrvUSD offers users a yield-bearing, interest-bearing stablecoin.”
the developers explained Curve’s stablecoin, crvUSD, is designed as a decentralized, over-collateralized asset secured by the LLAMMA algorithm, which minimizes liquidation risk. “This unique design stabilizes lending and borrowing, providing a safer and more resilient asset for users. Users can mint crvUSD by securing it with backed collateral or purchase it directly through exchanges, with the most liquid markets available on Curve itself.”
Furthermore, interest rates for crvUSD respond dynamically to its peg to the dollar: rates rise sharply if crvUSD falls below $1 and fall when it trades above $1.
“The introduction of scrvUSD as an interest-bearing stablecoin addresses this by providing low-risk yields derived from a portion of the interest paid by crvUSD miners. This yield is managed on-chain by CurveDAO, which effectively acts as an on-chain decentralized central bank that offers ‘low-risk’ returns,” he highlighted.
As a self-composting, interest-bearing stablecoin, scrvUSD holds value beyond just stable transactions; it can be deployed across the broader DeFi ecosystem, from lending protocols to liquidity pools and trading platforms.
