Curve founder says it's 'possible' crvUSD stablecoin will launch next month

Quick Take

  • During a community discussion, Curve Finance founder Michael Egorov said the protocol’s upcoming stablecoin could launch as early as next month. 
  • It is the first time a release date has been hinted at since Egorov raised the possibility of an over-collateralized stablecoin at a crypto conference in July. 
 

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. 

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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.

 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

James Hunt is a reporter at The Block, based in the UK. As the writer behind The Daily newsletter, James also keeps you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the latest market updates. You can get in touch with James on Telegram or X via @humanjets or email him at [email protected].