{"id":79940,"date":"2023-06-08T16:34:04","date_gmt":"2023-06-08T13:34:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=79940"},"modified":"2025-09-11T13:55:19","modified_gmt":"2025-09-11T10:55:19","slug":"curve-finance-enables-crvusd-issuance-backed-by-wsteth","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/curve-finance-enables-crvusd-issuance-backed-by-wsteth\/","title":{"rendered":"Curve Finance enables crvUSD issuance backed by wstETH"},"content":{"rendered":"<p>The decentralized exchange <a href=\"https:\/\/forklog.com\/en\/news\/what-is-curve\">Curve Finance<\/a> added support for Lido&#8217;s wrapped version of stETH as collateral for the issuance and borrowing of the stablecoin crvUSD.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">\/1 Looks like we have the first looping happening with <a href=\\\"https:\/\/twitter.com\/search?q=%24crvUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$crvUSD<\/a> using wrapped <a href=\\\"https:\/\/twitter.com\/search?q=%24stETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$stETH<\/a> collateral. <\/p>\n<p>This addy started off with 21.8 <a href=\\\"https:\/\/twitter.com\/search?q=%24wstETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$wstETH<\/a> as collateral, and grew the position to 761k crvUSD and 381 wstETH. <a href=\\\"https:\/\/t.co\/yQxue26Rax\\\">https:\/\/t.co\/yQxue26Rax<\/a> <a href=\\\"https:\/\/t.co\/sGhwR7mJH6\\\">pic.twitter.com\/sGhwR7mJH6<\/a><\/p>\n<p>\u2014 DefiMoon ?? (@DefiMoon) <a href=\\\"https:\/\/twitter.com\/DefiMoon\/status\/1666660831172481025?ref_src=twsrc%5Etfw\\\">June 8, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The proposal received 100% backing in the vote, with a quorum of 84.5%.<\/p>\n<p>Wrapped staking ETH, wstETH, is an asset from <a href=\"https:\/\/forklog.com\/en\/news\/what-is-lido\">Lido<\/a> for interacting with DeFi protocols. Staked ETH on the Ethereum platform is represented by stETH.<\/p>\n<p>However, the token has a dynamic balance due to the accrual of staking rewards. Some decentralised platforms like Uniswap, 1inch and SushiSwap do not support this mechanism, and users may lose part of their yield by moving stETH to them. The use of wstETH resolves the issue.<\/p>\n<p>The Curve Finance team on May 4 <a href=\"https:\/\/forklog.com\/en\/news\/curve-finance-launches-crvusd-stablecoin-on-the-ethereum-mainnet\">launched crvUSD<\/a> on the Ethereum mainnet. The process <a href=\"https:\/\/forklog.com\/en\/news\/curve-finance-relaunches-crvusd-after-deployment-error\">required a restart<\/a> due to a detected bug, which the developers implemented successfully.<\/p>\n<p>The first collateral for issuing the stablecoin on the platform was sfrxETH from the Frax protocol. The asset is also used to earn Ethereum staking yield.<\/p>\n<p>As of writing, the amount borrowed in crvUSD exceeded $14.5 million. With wstETH collateral, users borrowed $4.04 million. The annual rate for them stands at 6.04%, while for sfrxETH holders \u2014 6.67%.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"130\\\" src=\\\"https:\/\/forklog.com\/wp-content\/uploads\/image-373-1024x130.png\\\" alt=\\\"image-373\\\" class=\\\"wp-image-208830\\\" srcset=\\\"https:\/\/forklog.com\/wp-content\/uploads\/image-373-1024x130.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/image-373-300x38.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/image-373-768x97.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/image-373.png 1214w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>\u0414\u0430\u043d\u043d\u044b\u0435: <a href=\\\"https:\/\/crvusd.curve.fi\/#\/ethereum\/markets\\\">Curve Finance<\/a>.<\/figcaption><\/figure>\n<p>The crvUSD issuance mechanism uses an overcollateralization model akin to DAI from <a href=\"https:\/\/forklog.com\/en\/news\/what-are-makerdao-mkr-and-the-dai-stablecoin\">MakerDAO<\/a>. The capitalization of this stablecoin is approaching $4.6 billion (<a href=\\\"https:\/\/defillama.com\/protocol\/makerdao\\\">DeFi Llama<\/a>).<\/p>\n<p>Earlier reports said <a href=\"https:\/\/forklog.com\/en\/news\/curve-finance-chief-buys-two-melbourne-mansions-for-40-million\">two villas worth about $40m<\/a> in Melbourne.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The decentralized exchange Curve Finance added support for Lido&#8217;s wrapped version of stETH as collateral for the issuance and borrowing of the stablecoin crvUSD.<\/p>\n","protected":false},"author":1,"featured_media":79941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1426,1093,807],"class_list":["post-79940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-curve-crv","tag-defi","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/79940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=79940"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/79940\/revisions"}],"predecessor-version":[{"id":79942,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/79940\/revisions\/79942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/79941"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=79940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=79940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=79940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}