Curve to Launch Over-Collateralized Stablecoin: Founder

Curve to Launch Over-Collateralized Stablecoin: Founder


Key Takeaways

Curve Finance will be launching its own stablecoin, Curve CEO Michael Egorov indicated during a conversation with The Spartan Group co-founder Kelvin Koh. Egorov said the stablecoin will have an over-collateralization mechanism, though he refused to reveal any more details. The revelation comes following the recent news that DeFi lending platform Aave is planning on releasing its own stablecoin, named GHO.

Share this article

Curve is planning its own over-collateralized stablecoin, Curve CEO Michael Egorov revealed today. The stablecoin is likely to have a similar structure to MakerDAO’s DAI.

Stablecoins Galore

Curve is looking to launch a native stablecoin, according to comments from its CEO.

A tweet from SCB 10X, an investment firm based in Thailand, indicated that the subject of a native Curve stablecoin was raised today during a virtual chat between Curve CEO and founder Michael Egorov and The Spartan Group co-founder Kelvin Koh.

When asked whether Curve would launch a stablecoin, Egorov directly replied that the stablecoin would be over-collateralized, adding, “That’s all I can say for now.”

Curve Finance is a decentralized finance (DeFi) protocol that specializes in providing “extremely efficient” stablecoin trading services. According to DeFi Llama, Curve currently has $5.97 billion worth of cryptocurrency locked on its platform across ten different blockchain ecosystems.

Stablecoins are cryptocurrencies designed to stay at parity with government-issued currencies such as the dollar or the euro. In the DeFi space stablecoins tend to be over-collateralized, like MakerDAO’s DAI, or under-collateralized, like Terra’s UST. 

The issue of stablecoin collateralization has come to the forefront for many following UST’s spectacular implosion in May, which directly wiped out an estimated $43 billion from the crypto market. Egorov’s comment indicates Curve’s stablecoin will likely follow a model closer to DAI’s in order for the coin to avoid UST’s fate.

Curve’s foray into the stablecoin arena follows the recent announcement from another major DeFi protocol, lending platform Aave, that it will issue its own over-collateralized stablecoin called GHO.

The overall stablecoin market is currently worth over $153 billion. Major centralized issuers such as Tether and Circle have announced plans to expand their product offerings to coins that will be backed by currencies other than the U.S dollar, such as the Mexican peso and the euro.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies. 

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.


Source link

Latest Crypto News

Popular Links

Notify of
Inline Feedbacks
View all comments