crvUSD

Halal Rating :
Uncomfortable
Last Price $1.0 Last updated:
Rank 10577
1D Change -0.01 %
Market Cap $90.9m
Circulating supply 90,936,442
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • Stablecoin
  • Ethereum Ecosystem
  • Polygon Ecosystem
  • USD Stablecoin
  • Optimism Ecosystem
  • Base Ecosystem
  • Rehypothecated Crypto
  • Gnosis Chain Ecosystem

Overview

crvUSD is a stablecoin launched by Curve Finance in June 2023. It operates as an overcollateralized stablecoin that maintains its peg to the US dollar through a unique monetary policy mechanism called LLAMMA (Lending-Liquidating AMM Algorithm).

Purpose and Utility

The primary purpose of crvUSD is to serve as a decentralized stablecoin within the Curve ecosystem. Users can mint crvUSD by depositing supported collateral assets like ETH, wstETH, or sfrxETH. The LLAMMA mechanism automatically manages liquidations and helps maintain the dollar peg.

Business Model and Operations

The protocol operates through smart contracts that manage collateral deposits and crvUSD minting. The system generates revenue through liquidation fees and spread fees, which are distributed to veCRV holders. The business model is transparent and all operations are verifiable on-chain.

Real-World Adoption

As of early 2024, crvUSD has achieved significant adoption with over $400 million in total circulation. It is actively traded on major decentralized exchanges and has been integrated into various DeFi protocols.

Platform Development

The development team maintains active GitHub repositories with regular updates. The protocol has undergone multiple security audits and continues to expand its supported collateral types and functionality.

Token Distribution

crvUSD is not a speculative token - it is a stablecoin that can be minted by anyone who provides sufficient collateral. There is no pre-mine or team allocation.

Crypto Impact

To assign a comfort level investing in crvUSD from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to crvUSD.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

We will review your contribution for accuracy before publication.

Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.

You only have one vote per asset so use it wisely.

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