Representatives from Curve confirmed the deployment but specified that the launch is not yet complete as a user interface, namely a frontend to interact with the crvUSD smart contracts, is still under development. The team behind Curve Finance created a total of 20 million crvUSD on the mainnet, which are viewable on the Etherscan blockchain explorer at the time of writing. An address labelled as Curve on Arkham Intelligence took a loan of 1 million crvUSD (USD 1 million) with 957 Frax Ether (USD1.8 million).
According to settlemint.com, the Ethereum Mainnet represents the primary public Ethereum production blockchain, where actual-value transactions take place. Each transaction requires payment of a transaction fee, payable in the native coin ETH. The Ethereum project also includes a Testnet, which is an instance of the blockchain that can be used for testing and experimentation.
Stablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument. The crvUSD stablecoin, which is a decentralised currency pegged to the US dollar, has a token design like MakerDAO's DAI stablecoin, rather than relying on dollar reserves. According to theblock.co, the project will be over-collateralised by supported crypto assets surpassing the value of issued crvUSD. Just like DAI, crypto users on the Curve platform can mint crvUSD stablecoins through over-collateralised loans.
When it comes to adoption, the popularity of the crvUSD stablecoin will be influenced by the fact that it was designed by one of the largest decentralised finance platforms. However, it will still have to deal with competitors such as USDT and USDC, which represent USD 82 billion and USD 30 billion respectively of the overall USD 130 billion stablecoin market according to theblock.co.
In 2023, several entities launched their own stablecoins, including Switzerland-based Centi and Societe Generale-FORGE.
In March 2023, payment startup Centi has announced the launch of a Swiss Franc stablecoin that aims to support the company’s Global Payment Network. With this solution, Centi enables merchants to benefit from direct payment settlement into their banks in their preferred fiat currency without having to change accounting procedures or have any crypto knowledge. In essence, Centi’s clients can receive services similar to those provided by the credit card industry with substantially reduced fees.
In April 2023, Societe Generale-FORGE launched the CoinVertible digital asset in Euro denomination on the Ethereum public blockchain. Societe Generale–FORGE is a fully integrated and regulated subsidiary of Societe Generale Group, and it is licensed as an investment firm and authorized to provide MiFID2 investment services under the supervision of the Prudential Supervision and Resolution Authority.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now