Originally published on: November 13, 2024
Curve Finance has made waves in the decentralized finance world by launching a revolutionary yield-bearing stablecoin called “Savings-crvUSD” (scrvUSD). This new stablecoin is designed to provide investors with low-risk returns while helping to scale the underlying crvUSD stablecoin.
The process is simple — users can mint scrvUSD by depositing crvUSD into the scrvUSD module. The underlying crvUSD is backed by a variety of digital assets, including Ether (ETH), Wrapped Bitcoin (WBTC), and more. Curve Finance ensures the security of user funds by never rehypothecating or moving them from the vaults where they are stored.
This innovative approach allows the vault to stabilize borrowing rates for the underlying crvUSD stablecoin. Curve Finance founder Michael Egorov shared that with over 3 million crvUSD already inside Savings crvUSD, this new system is proving to be sustainable and successful.
The introduction of scrvUSD is set to enhance the composability of Curve Finance’s stable assets, opening up a world of possibilities for traders and investors in the decentralized finance ecosystem.
Curve Finance has been making significant strides in the DeFi space, with a recent collaboration with The Open Network to increase composability between the two ecosystems. This partnership aims to create a seamless interaction between the diverse pieces of DeFi infrastructure, offering users more efficiency and opportunities in the market.
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