crvUSD

crvUSD

Supported pairs: crvUSD/USDT, crvUSD/USDC

Contract address: 0xf939e0a03fb07f59a73314e73794be0e57ac1b4e

crvUSD is CurveFi’s native stablecoin. Similar to other stablecoins, it’s backed by an underlying asset, ETH, in this case. crvUSD is used in a collateralized debt position (CDP), meaning that crvUSD is overcollateralized and has little exposure to liquidation risk.

Curve Finance announced the development of its stablecoin in 2022 and subsequently released a whitepaper for the stablecoin in the same year. On May 3, 2023, Curve Finance launched the crvUSD smart contract on the Ethereum network.

In a significant move, CurveFi’s CEO, Michael Egorov, deposited 957 sfrxETH (a type of ETH created by Frax) valued at $1.8 million to mint $1 million crvUSD. Currently, there are only 20 million crvUSD in supply.

DeFi users have the option to deposit sfrxETH as collateral to mint new crvUSD stablecoins. It’s important to note that crvUSD is not a governance token and does not grant voting rights on CurveFi’s proposals. Decisions are made on CurveFi protocol using the CRV token–its other native token. CRV allows the CurveFi community to vote on protocol fees, rewards, and development decisions. The token is also used for yield farming activities.