During the first 5 minutes after the launch, crypto investors minted $20 million worth of crvUSD.
Curve Finance's recently introduced algorithmic stablecoin, crvUSD, has witnessed a whopping $22 million minted since its Ethereum mainnet debut.
This decentralized finance (DeFi) protocol released its native US dollar-pegged stablecoin on the Ethereum network on May 3rd. Upon the launch, crvUSD rapidly garnered the attention of crypto investors.
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In just 8 hours, the contract minted over $22 million in crvUSD, with an astonishing $20 million minted in the initial 5 minutes. This significant milestone demonstrates the growing interest in algorithmic stablecoins and their potential in the DeFi sector.
Though crvUSD is now live on the Ethereum network, it remains inaccessible to the general public, pending its integration into Curve's front-end user interface on the official website. An admin from Curve Finance's Telegram chat responded to a user's query, assuring that the public release is coming "soon."
It is worth noting that crvUSD design differs from the now-defunct algorithmic stablecoin TerraUSD (UST) by adopting an approach akin to MakerDAO's Dai (DAI) stablecoin. The crvUSD whitepaper explains that it will function as a "collateralized-debt-position" stablecoin, necessitating users to deposit collateral to obtain a loan in crvUSD.
The possible release of an algorithmic stablecoin was revealed by a Curve Team member on July 21st, 2022. Curve's founder, Michael Egorov, later confirmed during the ReDeFine Tomorrow Web3 summit that the stablecoin would be overcollateralized.
Curve isn't alone in its quest to introduce an algorithmic stablecoin to the market. In February, Aave (AAVE), a competing DeFi protocol, launched a testnet version of its "native decentralized, collateral-backed stablecoin" called GHO.
The launch of crvUSD has positively impacted the protocol's native Curve DAO (CRV) token, which surged by approximately 5% as per BitDegree data. At present, CRV is trading at $0.95.
The introduction of crvUSD has already made a significant impact on the market, highlighting the potential of algorithmic stablecoins in the DeFi space.
