Fun

Curve Finance adopts crvUSD for fee distribution

News Feed - 2024-06-28 10:06:16

Josh O"Sullivan10 hours agoCurve Finance adopts crvUSD for fee distributionCurve Finance shifts from 3crv to crvUSD for fee distribution, enhancing the stablecoin’s utility and ecosystem integration.1297 Total views41 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCurve Finance has changed its fee distribution mechanism, transitioning from the 3cr token to its native stablecoin, crvUSD.


The move aims to improve crvUSD’s utility and integrate the stablecoin into the Curve Finance ecosystem to incentivize users. Source: Curve Finance


Related:Curve CEO clears up UwU Lend hack, CRV burn misinformationWhat users need to know


According to a press release shared with Cointelegraph, the switch in fee distribution to crvUSD will create “an additional supply sink for the stablecoin.”


The release explains that uncollected fees are mainly responsible for the “supply sink,” potentially increasing the total value locked (TVL).


Michael Egorov, the founder of Curve Finance, spoke with Cointelegraph about how the switch would impact Curve Finance users:“The transition to crvUSD means that users will now obtain fees in a dollar-denominated stablecoin. This shift simplifies the process significantly, as crvUSD doesn’t have to be converted to anything else to be utilized in Curve Finance products.”


Related:Curve Finance soft liquidation works, but CRV plunges 28%Community engagement incentive


According to the press release, the distribution of fees in crvUSD will incentivize the use of the stablecoin, encouraging users to engage more in products and services that utilize it.


On community incentives through the transition, Egorov told Cointelegraph that Curve users could deposit crvUSD into the ecosystem using fees earned.“The value of 3crv, although generally increasing, has a variable conversion rate (currently around 1.03). This variability necessitated additional steps for users to convert 3crv into a more stable or usable form of currency for other activities.”


Related:Curve founder repays 93% of $10M bad debt stemming from liquidationTransition risks


Curve Finance stated in the press release that it plans to address certain liquidity concerns users might have and risks associated with the transition.


Speaking about the risks, Egorov told Cointelegraph that there are a “few potential risks to bring up with this transition,” which include operational risks and asset age.“The 3crv token has been operational for over four years and has shown no issues. [...] CrvUSD is just one year old and has yet to fully establish its reliability. It underwent multiple audits and has been deemed fit for deployment, but it is inherently less time-tested compared to 3crv.”


Egorov also discussed the operational risks during the “preparation phase” for onchain votes required for the change, but they have been mitigated since “all relevant votes” have passed.


Magazine:As Ethereum phishing gets harder, drainers move to TON and Bitcoin# Cryptocurrencies# Decentralization# Adoption# Tokens# Stablecoin# DeFi# Curve FinanceAdd reaction

News Feed

Savannah Fortis10 hours agoDOJ calls SBF’s fraud allegation defense ‘irrelevant,’ requests additional infoThe U.S. Department of Justice has issued a new court filing in its case against Sam Bankman-Fried in which
Russian Parliament Votes on Bill Opening Door for Digital Ruble
Russian Parliament Votes on Bill Opening Door for Digital Ruble Russian lawmakers have approved a draft law facilitating the implementation of the digital version of the national c
Maxine Waters Criticized for Praising SBF — Lawmaker Says ‘We Appreciate That You’ve Been Candid’
Maxine Waters Criticized for Praising SBF — Lawmaker Says "We Appreciate That You"ve Been Candid" Congresswoman Maxine Waters has been heavily criticized for saying that she appr
‘FTX Accounts Drainer’ Now Holds Over 250,000 ETH, Address Is the 27th Largest Ethereum Wallet
"FTX Accounts Drainer" Now Holds Over 250,000 ETH, Address Is the 27th Largest Ethereum Wallet The exploiter responsible for siphoning millions of dollars in ERC20 tokens and ether
Critics Claim Tesla Should Sell Bitcoin Position, Electric Vehicle Firm’s Shares Down 30% Since Buying
Critics Claim Tesla Should Sell Bitcoin Position, Electric Vehicle Firm"s Shares Down 30% Since Buying Ever since Tesla announced the company held $1.5 billion i
Marcel Pechman2 hours agoEther price risks losing the $1.6K support as multiple ETH price metrics declineA lack of network activity and ground lost to competitors could eventually play a role in ETH losing the $1,600 sup
Martin Young4 hours agoDigital marketing will become Web3’s next major use case, says reportMore than 70 startups have raised over $600 million in the embryonic Web3 digital marketing sector.1507 Total views31 Total sh
How Should Crypto Prepare for Google’s ‘Quantum Supremacy’?
“Quantum supremacy.” The term inspires images of a giant world-brain supercomputer that can count the grains of sand on every beach on Earth. But what does Google’s official claim of supremacy mean and
Metaplanet, Semler Scientific were ‘zombie companies’ until Bitcoin, execs say
Brayden Lindrea7 hours agoMetaplanet, Semler Scientific were ‘zombie companies’ until Bitcoin, execs sayShares in Metaplanet and Semler Scientific are up double and triple digits since the firms followed MicroStrateg
Tom Blackstone2 hours agoStocks fall, yields rise as inflation data comes in hotter than expectedThe stock market declined on Oct. 12 as the US BLS released new data showing prices rose faster than expected.390 Total vie
Moody’s Warns of Potential Financial Disruption Spillover Beyond US Banking Sector
Moody"s Warns of Potential Financial Disruption Spillover Beyond US Banking Sector Roughly ten days ago, the credit agency Moody’s Investors Service downgraded the U.S. banki
Insurance Company Sued for Refusing to Cover $7.5 Million Bitcoin Ransom Payment
Insurance Company Sued for Refusing to Cover $7.5 Million Bitcoin Ransom Payment A British jeweler has sued its insurance company for refusing to cover a bitcoin ransom payment of