- The decision is made by the community during the voting
- It will last until June 25th.
- If approved, users will use WETH to generate up to 200 million crvUSD
In the Curve community started vote to accept WETH as collateral for minting and borrowing in crvUSD stablecoins.
The proposal is currently supported by almost 100% of the participants. Voting ends June 25th.
So far, the Curve Finance protocol accepts two assets for issuing crvUSD – Wrapped Staked Ether and Staked Frax Ether. If the proposal is approved, then users will be able to pledge the so-called “wrapped” ethers WETH. At the same time, it is proposed to set a debt ceiling of $200 million crvUSD. That is, only 200 million crvUSD coins can be minted using WETH collateral.
DeFi protocol Curve Finance introduced its stablecoin last month. Unlike traditional competitors, it is backed not by dollar reserves, but by decentralized debt (CDP). The stablecoin DAI from MakerDAO or GHO from Aave GHO works on a similar principle.
The stablecoin crvUSD has a LLAMMA automatic market maker lending-liquidating algorithm. This mechanism reduces the impact of liquidation on borrowers. Users will be able to mint crvUSD against the security of tokens deposited in the protocol. This gives them access to liquidity and allows them to earn rewards on their deposits. Read more about this asset in our material.