Today, the developers of Curve Finance successfully deployed the smart contracts for decentralized stablecoin crvUSD on Sepolia testnet. This step signifies that the team is making progress toward a mainnet launch of crvUSD on Ethereum.

Curve Finance, initially created in 2020, is the largest decentralized exchange that specializes in swapping stablecoins with reduced slippage and minimal fees. With more than $4.2 billion locked on its platform, it runs its markets across multiple blockchains.

In July 2022, Curve founder Michael Egorov revealed that the team is working on a native stablecoin. Several months later, in November 2022, the team released the crvUSD whitepaper and its initial code.

The crvUSD stablecoin has comparable token design to MakerDAO's DAI stablecoin, due to the fact that it is overcollateralized by supported crypto assets. To mitigate the risk of the stablecoin, it employs a new algorithm, Lending-Liquidating Automated Market Maker (LLAMMA). This algorithm automatically deposits collateral to maintain its peg to the U.S. dollar, as per its whitepaper.

At the moment, the most dominant stablecoins include USDT, USDC, and DAI. With USDT and USDC boasting $81 billion and $30 billion respectively, out of the entire $131.2 billion stablecoin market. DAI, having the closest design to crvUSD, has a total market capitalization of $4.7 billion. Given its active users and what it offers, Curve Finance’s crvUSD is may be very well on its way to becoming one of the most widely used decentralized stablecoins.



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