Stablecoin

crvUSD

Notable

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/curve-finance-shifts-fee-distribution-to-crvusd-stablecoin/" data-wpel-link="internal">Curve Finance Shifts Fee Distribution to crvUSD Stablecoin</a> 
Curve Finance changed its fee distribution mechanism by transitioning from its 3cr <a href="https://en.coin-turk.com/cryptocurrencies-create-wealth-and-loss-stories/" data-wpel-link="internal">token</a> to its stablecoin project, crvUSD. This step aims to improve the utility of crvUSD and integrate the stablecoin project into the Curve Finance <a href="https://newslinker.co" target="_blank" rel="noopener" data-wpel-link="exclude">ecosystem</a> to incentivize users. According to a press release shared by the team, transitioning fee distribution to crvUSD will create an additional supply pool for the stablecoin. 
<h2 class="p1" style="text-align: justify" id="significant-step-by-curve-finance-team">Significant Step by Curve Finance Team</h2> 
The statement explains that uncollected fees are primarily responsible for the supply pool and potentially increase the total value locked (TVL). Michael Egorov, the founder of Curve Finance, commented on how the transition will affect Curve Finance users: 
<blockquote> 
 “The transition to crvUSD means users will now receive fees in a dollar-denominated stablecoin. This change significantly simplifies the process as crvUSD does not need to be converted into something else for use in Curve Finance products.” 
</blockquote> 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-366133" src="https://coin-turk.com/wp-content/uploads/2024/06/curve.webp" alt="" width="500" height="583"> 
According to the press release, distributing fees in crvUSD will encourage the use of the stablecoin and incentivize users to participate more in products and services that use it. Regarding community incentives provided through the transition, Egorov mentioned that Curve users could invest crvUSD back into the ecosystem using the earned fees: 
<blockquote> 
 “Although the value of 3crv generally increases, it has a variable conversion rate, currently around 1.03. This variability requires users to take additional steps to convert 3crv into a more stable or useful currency form for other activities.” 
</blockquote> 
<h2 class="p1" style="text-align: justify" id="notable-details-on-the-subject">Notable Details on the Subject</h2> 
Curve Finance stated in the press release that it plans to address specific liquidity concerns and risks related to the transition that users may encounter. Speaking about the risks, Egorov mentioned several potential risks that could arise with this transition, including operational risks and the age of assets: 
<blockquote> 
 “3crv has been operational for over four years without any issues. CrvUSD is less than a year old and has not yet fully proven its reliability. It has undergone multiple audits and was deemed suitable for distribution but has been less time-tested compared to 3crv.” 
</blockquote> 
Egorov also discussed the operational risks during the preparation phase for the required on-chain votes for the change, but these risks have decreased since all related votes have passed. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/curve-finance-shifts-fee-distribution-to-crvusd-stablecoin/" data-wpel-link="internal">Curve Finance Shifts Fee Distribution to crvUSD Stablecoin</a></h5>

Curve Finance Shifts Fee Distribution to crvUSD Stablecoin

Table of Contents

COINTURK NEWS

Other articles published on Jun 28, 2024

AKT, AIOZ And NOS Are Buzzing: Key Metrics Suggest Rise Ahead

10 Billion Dollar Option Earthquake in Bitcoin and Ethereum! What to Expect in BTC and ETH Price?

Litecoin Breaks Bearish Trend with 25 Million Ordinals, Price Up 5%

Deciphering Bitcoin’s Signals: When to Invest in ADA, RUNE, RNDR

Crypto wealth platform Yield App faces liquidation due to FTX-triggered losses

Cryptocurrency Injective Decreases More Than 3% Within 24 hours

Join our free newsletter for daily crypto updates!