After briefly discussing the possibility of a decentralized stablecoin last month, Michael Egorov, the founder of Curve Finance, indicated that it could see the light of day next month. According to the few information available, it could be a decentralized stablecoin collateralized by several independent assets on a model similar to MakerDAO’s DAI.
Curve’s stablecoin for the month of September?
Last month, at the virtual crypto conference Redefine Tomorrow 2022, Michael Egorovthe founder of CurveFinancehad discussed the possibility of a stablecoin dubbed crvUSD.
Few details about the operation of said stablecoin had been revealed at the time, but it would seem in any case that the latter is coming soon. Indeed, on Curve’s Telegram channel, Michael Egorov replied to a member asking him if a launch of crvUSD was possible for the next month, to which he replied “possible”.
Although he was still elusive about the specifics of the stablecoin, however, we know that it will most likely be a decentralized over-collateralized stablecoin with an architecture similar to DAI from MakerDAO.
To this end, the founder of Curve had specified that the stablecoin would probably be collateralized by several different assets so as not to fall into a downward spiral as may have been the case during the collapse of the Terra ecosystem, where the UST depended only on the LUNA.
Curve is currently the third decentralized protocol in terms of total locked value (TVL) with $5.86 billion in assets under management.
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Decentralized stablecoins in vogue
Following the very recent Tornado Cash affair, which called into question the fragility of the various centralized projects and the censorship induced by the decisions of the various regulatorstotally decentralized solutions observe a growing demand.
Circlethe issuing company of USDC, the second most capitalized stablecoin on the market, had notably taken the decision to freeze some wallets that have interacted with Tornado Cash without even having received the order. By opposition, Tetherthe issuer of USDT, called the move “premature,” adding that it could hurt other stablecoin issuers.
Stablecoins are absolutely crucial to the ecosystem, and in fact currently account for more than $150 billion in market capitalization.
In general, companies that have a decentralized view of things let the operation of their assets rest on a more inclusive vision of finance and are therefore less inclined to censor wallets or transactions.
So, although the MakerDAO’s DAI dominates the decentralized stablecoin market, Curve will officially enter the race soon. This follows the announcement ofAave which recently validated the launch of its future stablecoin GHO with its decentralized autonomous organization (DAO).
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