Curve Finance to unveil new dollar-pegged stablecoin

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Following its creators uploading the stablecoin’s code to GitHub. Curve Finance, a major decentralized exchange for stablecoins may be approaching the verge of establishing a new dollar-pegged stablecoin.

The new dollar-pegged stablecoin was confirmed by Curve protocol creator Michael Egerov at a Web3 summit in July.

On August 2020, Curve floated a decentralized autonomous organization (DAO) and administration token called the Curve DAO Token (CRV). To manage liquidity using an automated market maker (AMM). This allows for the decentralization of power among those who hold the CRV tokens.

The Curve team is yet to make a formal announcement regarding the new dollar-pegged stablecoin. But its code has already been uploaded on GitHub which suggests that an official launch could be imminent.

The new dollar-pegged stablecoin would add to the already existing pool of popular dollar-pegged stablecoins such as USDT, USDC, and DAI. It remains to be seen how Curve’s offering will fare against these existing stablecoins.

The Curve team has been working on the new dollar-pegged stablecoin for quite some time now. And it is one of the most anticipated launches in the stablecoin space.

The dollar-pegged stablecoin from Curve

Although we don’t have many details yet. The new code posted on GitHub provides a brief insight into how the smart contracts of the upcoming stablecoin will function. The code also suggests that this stablecoin will be over-collateralized.

The new stablecoin will be called Curve’s dollar (crvUSD).

The value of crvUSD stablecoins will not be determined by real assets or cash, like other centralized stablecoins like Tether’s USDT and Circles USDC. Instead, it will be backed by a cryptocurrency treasury that is worth more than the total number of crvUSDs in circulation.

The over-collateralization is done on purpose to guarantee that it does not detach from its $1 peg. Maker’s DAI stablecoin, for example, is an excellent example of a highly over-collateralized stablecoin.

The Curve’s crvUSD will compete with Aave’s over-collateralized, under-liquidated GHO stablecoin. which was authorized after the DAO governing body ran a poll on its release. The GHO is secured by half of the AAVE coins.

Curve’s new dollar-pegged stablecoin will be unveiled soon. It is unclear when exactly the crvUSD will be launched but it is likely to happen in the next few weeks.

About Curve Finance

Curve Finance is a DeFi protocol that allows users to trade multiple ERC20 tokens with low slippage. The protocol is decentralized and powered by the CRV token. Curve has been live since January 2019.

The protocol uses a “Constant Product Market Maker” model. Which ensures that the product of the prices of all the tokens in the pool is always constant. This results in low slippage for trades as there is always liquidity in the market.

Curve recently launched its Curve DAO which allows CRV holders to govern the protocol. The Curve DAO is based on Aragon and allows for the decentralization of power among CRV token holders.

Conclusion

Curve Finance is a protocol that allows for the trading of multiple ERC20 tokens with low slippage. The protocol is powered by the CRV token and is governed by the Curve DAO. The Curve DAO is based on Aragon and allows for the decentralization of power among CRV token holders.

The stablecoin is set to unveil a new dollar-pegged stablecoin which will add to the pool of available assets.

Curve, Curve Finance, Curve DAO, stablecoin, Aragon, CRV, ERC20, tokens, liquidity, decentralized exchanges (DEX), decentralized finance (DeFi).

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