Ensuring that decentralized finance platforms and networks do not remain siloed is a key hurdle for DeFi applications to overcome.
Lending protocol Curve Finance has launched a decentralized yield-bearing stablecoin, dubbed “Savings-crvUSD” (scrvUSD) to offer “low-risk” returns for investors and help scale the underlying crvUSD stablecoin.
According to the November 13 announcement, Curve Finance, users can mint scrvUSD by depositing crvUSD to the scrvUSD module. The underlying crvUSD is overcollateralized by several digital assets including Ether (ETH), Wrapped Bitcoin (WBTC), and others. In a statement to Cointelegraph, Spokespeople for Curve Finance explained that user funds in scrvUSD are never rehypothecated or moved from the vaults where they sit.
This allows the vault to stabilize borrowing rates for the underlying crvUSD stablecoin. “With [over] 3 million crvUSD inside Savings crvUSD, this new part of the system is already sustainable,” Curve Founder Michael Egorov told Cointelegraph.
