Curve Finance Might Launch Native Stablecoin crvUSD Next Month

Curve Finance could launch its crvUSD decentralized stablecoin next month, according to a comment from founder Michael Egorov on the Curve community Telegram channel.

Egorov hinted at the possibility for Curve to introduce crvUSD during the Redefine Tomorrow 2022 virtual cryptocurrency event last month. On Monday, in response to a question about a potential launch in September, Egorov replied, saying this was “possible.”

Previously, Egorov implied an over-collateralized stablecoin — a type of decentralized stablecoin backed using an excess reserve collateral design, like Dai — was on the way for the decentralized exchange protocol but stopped short of revealing a release date.

His comment sparked a positive response from members of the Curve community. Though, in a similar style to his Redefine Tomorrow 2022 fireside chat, he did not elaborate further.

Curve specializes in stablecoin swaps and is one of the largest decentralized protocols, with over $5.8 billion in value locked on the platform. However, this has dropped from a peak of $24.3 billion in January following the MIM, UST and stETH depegging events — where these assets lost their corresponding 1:1 peg to USD or ETH.

In light of recent sanctions surrounding Tornado Cash and the subsequent freezing of centralized stablecoin assets such as USDC in affected wallets, there are growing calls from the DeFi community that decentralized finance requires decentralized stablecoins.

The potential Curve stablecoin follows similar proposals from other DeFi protocols, such as Aave, which could drive much-needed revenue and users to these platforms during the current market downturn, according to the Block.