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Curve CEO and founder Michael Egorov has indicated the protocol has plans to issue a stablecoin of its own.
Key Takeaways
- Curve Finance will launch its stablecoin, Curve CEO Michael Egorov indicated during a conversation with The Spartan Group co-founder Kelvin Koh.
- Egorov said the stablecoin would 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 to release its own stablecoin, GHO.
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 provides “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 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 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.
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