Curve to redeploy crvUSD stablecoin on Ethereum after 'mistake in deployment script'

Quick Take

  • Curve Finance will redeploy its crypto-backed stablecoin due to an issue in the initial rollout.
  • A mistake in the original script was identified through a peer review process.

Curve Finance will rerelease code for its crypto-backed stablecoin following "a mistake in the deployment script," a day after the stablecoin's smart contracts were deployed on the Ethereum mainnet. 

This comes after the team identified a problem with the initial deployment that would prevent vote-escrowed Curve (veCRV) token holders from earning rewards from liquidity pools containing its new crvUSD stablecoin. To resolve this issue, the team said it would need to redeploy the stablecoin.

This announcement follows the team's confirmation yesterday that the smart contracts for crvUSD had been deployed. However, they also noted that the final launch was not yet complete as a user interface — a frontend for interacting with the crvUSD smart contracts — remained under development.

Curve uses a vote-escrowed model, allowing CRV holders to stake their tokens in exchange for another token, veCRV, which includes staking rewards and incentives. The initial version of crvUSD contained an issue to properly distribute rewards to veCRV holders due to an error in the deployment script, per the team. 

"After some peer review of deployments, it was found that the current version of crvUSD needs redeployment, which will follow shortly today. veCRV wouldn't receive fees with this one due to a mistake in the deployment script," Curve Finance tweeted.


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Curve asked a user to return the stablecoin

The team requested that a DeFi user with a specific address (0x38) contact them since a fresh deployment could potentially render the existing version of the stablecoin useless in the future. The owner of that address had purchased 49,970 crvUSD stablecoins earlier from Curve's liquidity pool.

The Curve developers also left an on-chain message for the user stating: "Please contact @CurveFinance on Twitter or @michwill on Telegram to swap back crvUSD to USDC OTC. crvUSD is getting redeployed."

In response, the user sent back the tokens and received 49,965 USDC in exchange via an apparent over-the-counter swap, on-chain data show.

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About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]


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