DeFi Protocol Curve Finance Posts Code for Upcoming Stablecoin
DeFi protocol Curve Finance may be on the cusp of releasing its new dollar-pegged stablecoin.
On Tuesday, the stablecoin’s code was uploaded onto GitHub by its developers. Details are thin at present, but the new code show several smart contract functions for the new overcollateralized stablecoin,
Curve’s dollar (crvUSD) was confirmed by protocol founder Michael Egerov at a Web3 summit back in July.
Unlike centralized stablecoins like Circle’s USDC or Tether’s USDT, which are backed by hard cash and assets, the value of Curve’s greenback will be underpinned by a cryptocurrency treasury that will comfortably exceed the total value of the crvUSD tokens in circulation.
This is called over-collateralization, and it is done to ensure the new coin won’t slip its $1 peg. Maker’s DAI is perhaps the most well-known example of an overcollateralized stablecoin.
Another stablecoin contender is Aave. The Decentralized Autonomous Organization (DAO) governing the lending and borrowing protocol recently ran a poll to approve the launch of a new overcollateralized stablecoin called GHO.
The GHO proposal was approved by 99.9% of the community, who also pledged half a million AAVE tokens to collateralize it.
Let us see how far market will go.
Thank you.
Please, like, share and comment.
DeFi protocol Curve Finance may be on the cusp of releasing its new dollar-pegged stablecoin.
On Tuesday, the stablecoin’s code was uploaded onto GitHub by its developers. Details are thin at present, but the new code show several smart contract functions for the new overcollateralized stablecoin,
Curve’s dollar (crvUSD) was confirmed by protocol founder Michael Egerov at a Web3 summit back in July.
Unlike centralized stablecoins like Circle’s USDC or Tether’s USDT, which are backed by hard cash and assets, the value of Curve’s greenback will be underpinned by a cryptocurrency treasury that will comfortably exceed the total value of the crvUSD tokens in circulation.
This is called over-collateralization, and it is done to ensure the new coin won’t slip its $1 peg. Maker’s DAI is perhaps the most well-known example of an overcollateralized stablecoin.
Another stablecoin contender is Aave. The Decentralized Autonomous Organization (DAO) governing the lending and borrowing protocol recently ran a poll to approve the launch of a new overcollateralized stablecoin called GHO.
The GHO proposal was approved by 99.9% of the community, who also pledged half a million AAVE tokens to collateralize it.
Let us see how far market will go.
Thank you.
Please, like, share and comment.