crvUSD

What is crvUSD?

crvUSD is a decentralized stablecoin designed to maintain a peg to the US Dollar. It operates within the Curve Finance ecosystem, a prominent decentralized exchange known for its stablecoin liquidity pools.

How it Works

The stablecoin is minted through a collateralized debt position (CDP) mechanism. Users can deposit approved cryptocurrencies as collateral to borrow crvUSD. This process involves overcollateralization to help maintain the stablecoin's peg and absorb potential price fluctuations in the collateral assets.

Key Features

• Dollar-pegged stablecoin.
• Utilizes a collateralized debt position (CDP) model.
• Integrated within the Curve Finance ecosystem.
• Aims for stability through overcollateralization and liquidation mechanisms.