- The community decides in a vote
- It runs until June 25
- If approved, users will use WETH to create up to 200 million crvUSD
The Curve community has launched a vote to accept WETH as collateral for minting and borrowing in crvUSD.
The proposal currently has nearly 100% support. Voting will close on June 25.
For now, Curve Finance protocol is accepting two assets for crvUSD issuance – Wrapped Staked Ether and Staked Frax Ether. If the proposal is approved, users will be able to pledge so-called “wrapped” airwaves to WETH. At the same time, it is proposed to set the debt ceiling at $200 million crvUSD. That is, only 200 million crvUSD coins can be minted with pledged WETH.
DeFi Curve Finance introduced its stabelcoin last month. Unlike its traditional competitors, it is secured by decentralized debt (CDP) rather than dollar reserves. The DAI stabelcoin from MakerDAO or GHO from Aave GHO work on a similar principle.
The crvUSD stabelcoin has a credit-liquidation algorithm of the automatic market maker LLAMMA. This mechanism reduces the consequences of liquidation for borrowers. Users will be able to mine crvUSD against tokens deposited in the protocol. This gives them access to liquidity, and allows them to earn rewards on their deposits. Read more about this asset in our material.