Curve Finance, the company behind the Curve protocol, announced that it will be launching its own stablecoin. This will be an overcollateralized stablecoin, meaning that Curve is now competing in this area with other prominent DeFi protocols, such as Aave and Maker.
Curve’s stablecoin will be decentralized. Unlike centralized stablecoins, such as USDC and USDT, decentralized ones are backed by crypto assets like BTC and ETH. The over-collateralization of assets used for backing makes it easier for such a stablecoin to retain its dollar peg.
24 hours after the Curve stablecoin’s launch was announced, the protocol’s native token, Curve DAO Token (CRV), increased in value by over 21%. According to CoinMarketCap, its current price is $1.4. However, this is still a 97.67% decrease from its all-time highest price of $60.50, which the token reached in August 2020.