A new dollar-pegged stablecoin may be made accessible in the near future thanks to the DeFi protocol Curve Finance. The code for the stablecoins was uploaded to GitHub on Tuesday, as announced by the project’s creators. Despite the fact that the new code exhibits a multitude of smart contract functionalities for the newly over-collateralized stablecoin, specifics are still limited.
During a Web3 event that took place in July, Michael Egerov, the inventor of the protocol, confirmed the existence of the Curve dollar (crvUSD). The greenback issued by Curve will have its value backed by a cryptocurrency treasury. It easily surpasses the value of all of the crvUSD tokens that are currently in circulation.
In contrast to centralised stablecoins such as Circle’s USDC and Tether’s USDT, which are backed by actual cash and assets, decentralised stablecoins are backed by cash and assets. The new currency will be able to keep its $1 peg in the market as long as there is sufficient over-collateralization.
A vote was held not too long ago by the Decentralized Autonomous Organization (DAO), which is in charge of regulating the lending and borrowing protocol, in order to get approval for the launch of a new over-collateralized stablecoin that will be known as GHO.
In addition, almost the whole community (99.9%) agreed with the GHO plan, and they offered up a half million AAVE tokens as collateral for it. Curve Finance enables the trading of stablecoins at low transaction costs and with very minimal slippage by using smart contracts and the Ethereum network.
Users get annual rewards for staking their bitcoin holdings in one of the protocol’s liquidity pools, which collectively hold a total of $5.49 billion. A hack was carried out on the Curve frontend around a month ago. A little more than 327 Ethereum, worth around $570,000 at the time, were taken without permission and laundered via the FixedFloat cryptocurrency exchange.
FixedFloat was able to put a hold on 112 Ethereum worth of the stolen assets on the same day that the event occurred. Additionally, it was announced a few days later by the CEO of Binance, Changpeng “CZ” Zhao, that the exchange had froze 83% of the assets, bringing the total to $450,000.