Rapid Insights: Curve’s Stablecoin Protocol

Launched in 2020, Curve initially gained popularity as an exchange focused on trades between similarly priced assets and remains one of the leading decentralized exchanges by volume. Curve later released Curve v2, which generalized concentrated liquidity provisioning to other assets. Most recently, Curve has explored the release of a native stablecoin protocol (crvUSD). 

While hinted at for several months, complete details for crvUSD have only been recently revealed. At a high level, the design focuses on ameliorating CDP liquidation risks while maximizing capital efficiency. This is controlled using three main design components: (1) the lending-liquidating AMM algorithm (LLAMA), (2) the PegKeeper module, and (3) a stablecoin monetary policy.