- Curve Finance launches yield-bearing stablecoin, Savings-crvUSD (scrvUSD).
- scrvUSD stabilizes interest rates and improves the ability to compound DeFi.
- Curve partners with The Open Network to drive ecosystem integration and efficiency.
Curve Finance, a leading decentralized finance (DeFi) platform, has launched a new decentralized yield-bearing stablecoin called Savings-crvUSD (scrvUSD) to provide investors with low risk returns and further scale its crvUSD stablecoin.
The new product aims to stabilize borrowing rates for crvUSD while improving configurability within the DeFi ecosystem.
The scrvUSD stablecoin
Launched on November 13, 2024, the scrvUSD stablecoin allows users to mint the token by depositing crvUSD into the scrvUSD module. The underlying crvUSD is overloaded by digital assets such as Ethereum (ETH), Wrapped Bitcoin (WBTC) and others, securing users’ funds.
Crucially, Curve Finance has emphasized that funds in scrvUSD will not be re-mortgaged or moved out of the vaults, keeping the stablecoin a safe and sustainable option for investors.
According to Curve Finance founder Michael Egorov, the scrvUSD module is already sustainable, with over 3 million crvUSD stored in the vault. This initiative is designed to provide stability to the DeFi ecosystem and address the volatility issues associated with traditional stablecoins.
The introduction of scrvUSD also marks an important step in Curve Finance’s broader strategy to improve composability within decentralized finance.
Composability refers to the ability of different DeFi applications to work together seamlessly, giving users access to innovative financial products.
Curve Finance’s move to scrvUSD follows its previous decision in June 2024 to adopt crvUSD as the primary fee distribution vehicle, signaling a shift towards further integration between the DeFi platforms.
Curve Finance’s partnership with TON
Additionally, Curve Finance is expanding its ecosystem through a partnership with The Open Network (TON). This partnership aims to increase interaction and the possibility of merging between the two decentralized networks, fostering new opportunities for traders and investors.
As part of this collaboration, a competition was launched to develop Curve’s Constant Functional Market Maker (CFMM) – a tool designed to curb market volatility and slippage, thus improving overall efficiency in the DeFi space.
Through these strategic steps, Curve Finance continues to strengthen its position as a crucial player in the evolving DeFi landscape.
