Curve Finance, is a popular platform and has made a niche for itself in the stablecoin trading. The on-chain Ethereum liquidity pool could be in the process of releasing its very own Stablecoin. Tweets from SCB 10X a holding company of the SCBX group drop the hint that a stablecoin from Curve could be imminent.
Curve Finance is a platform which enables hassle free exchange of ERC-20 tokens from different ecosystems with low fees and low slippage. If the above news is true, Curve Stablecoin will be the second stable coin to be unveiled in close succession. . AAVE also announced the launch of its stablecoin, GHO.
Contours Of The Curve Stablecoin
Kelvin Koh, co-founder of the Spartan Group, the CEO of Curve, Michael Egorov, first gave the hint that the group is going to start a Stablecoin and revealed that the Curve Stablecoin would be over-collateralized. However other than this, he did not give any other details about the project.
Mrblocktw, a member of Curve Finance, sharing the name of the stablecoin -“curve-stablecoin” revealed that the stablecoin will be first released on their Github.
As per Yahoo Finance , the token will be mined against liquidity provider positions, making it akin to the MakerDAO stablecoin DAI.DAI is also minted through an over collateralized loan and payment. The minting is based upon an ERC-20 that makes sure that its value is pegged to $1.
The Controversy Surrounding Stablecoins
Stablecoin have a controversial background and there are many experts who question the stability of such instruments. Stablecoins are designed or at least intended to control volatility of the cryptocurrency. Its value is often pegged to an underlying asset such as a Dollar or Euro.
However in recent ties stablecoins have been in news especially the infamous Terra and LUNA crash. Terra, an algorithmic stablecoin which lost its peg to the dollar and crashed, leading to one of the biggest cryptowinters in the existence of cryptocurrencies. It needs to be seen if the Curve Stablecoin is stable because an evaluation will not b possible without more details