key takeaways
- Curve Finance is launching its own stablecoin, Curve CEO Michael Egorov hinted during a conversation with Kelvin Koh, co-founder of The Spartan Group.
- Egorov said the stablecoin would have an over-collateralized mechanism, though he declined to reveal further details.
- This revelation comes after recent news that DeFi lending platform Ava is planning to issue its own stablecoin, named GHO.
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Curve CEO Michael Egorov revealed today that Curve is planning its own ultra-collateralized stablecoin. The stablecoin is likely to have a similar structure to MakerDAO’s DAI.
stable coins in abundance
Per the comments of its CEO, Curve is looking to launch a native stablecoin.
a Tweet From SCB 10X, an investment firm based in Thailand, indicated that the topic 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 replied directly that stablecoins would be collateralized more, adding, “That’s all I can say for now.”
curve finance is a decentralized finance (DeFi) protocol that specializes in providing “highly efficient” stablecoin trading services. According to the DeFi Lama, the curve is currently Is The cryptocurrency, worth $5.97 billion, is locked in ten different blockchain ecosystems on its platform.
Stablecoins are cryptocurrencies that are designed to be in parity with government-issued currencies such as the dollar or the euro. Stablecoins in the DeFi space are over-collateralized, such as MakerDAO’s DAI, or under-collateralized, such as Terra’s UST.
The issue of stablecoin collateral has come to the fore for many with UST’s impressive following. Diversity In May, that wiped out an estimated $43 billion directly from the crypto market. Egorov’s comment indicates that Curve’s stablecoin will follow a model closer to DAI to avoid the fate of UST.
Curve’s entry into the stablecoin space follows the recent announcement from lending platform Ava, another major DeFi protocol, that it would issue Its own ultra-collateralized stablecoin called GHO.
The overall stablecoin market is in present Worth more than $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 US dollar, such as Mexican Peso And this euro,
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.