CDS Crypto News Curve Finance now lets you use wrapped staked ether to borrow its stablecoin
Crypto News

Curve Finance now lets you use wrapped staked ether to borrow its stablecoin

Decentralized exchange Curve Finance has added support for wrapped staked ether.

811
Curve Finance founder deposits $24M in CRV to Aave

Curve Finance, a decentralized exchange, has incorporated wrapped staked ether (wstETH) as a viable option for using as collateral when creating and borrowing its decentralized stablecoin, crvUSD.

Curve Finance now lets you use wrapped staked ether to borrow its stablecoin

Curve Finance now lets you use wrapped staked ether to borrow its stablecoin

Curve Finance, a decentralized exchange, has recently included wrapped staked ether (wstETH) as an accepted form of collateral for minting and borrowing its decentralized stablecoin, crvUSD. This decision was made through a successful on-chain vote on June 8, which received unanimous support with a substantial 84.5% quorum.

With this update, users of the exchange can utilize their wstETH as collateral and generate a corresponding amount of crvUSD stablecoin. However, there is a 6% borrowing rate associated with this process, based on current values. In the event that the value of the collateral decreases, it will be gradually liquidated to maintain the stability of the position.

At present, there is a debt ceiling of 150 million crvUSD, equivalent to $150 million, which indicates the maximum amount of crvUSD that can be minted using wstETH as collateral.

Additionally, the platform also supports staked frax ether (sfrxETH) as collateral, representing a staked version of Frax Finance’s token loosely pegged to the value of ether.

It’s important to note that both of these markets are exclusively available on the beta version of Curve. The developers at Curve Finance initially deployed crvUSD on the Ethereum mainnet just last month.

About Curve Finance

Curve Finance now lets you use wrapped staked ether to borrow its stablecoin

Curve Finance is a protocol designed as an automated market maker (AMM) that facilitates seamless swaps between stablecoins with minimal fees and slippage. It operates as a decentralized liquidity aggregator, enabling individuals to contribute their assets to various liquidity pools and earn fees in return.

Curve operates based on a pricing algorithm instead of relying on an order book. The unique pricing formula employed by Curve makes it particularly advantageous for exchanging tokens that maintain a relatively similar price range.

This implies that Curve is not only highly efficient for swapping between stablecoins but also for exchanging different tokenized versions of a particular coin. Consequently, Curve stands out as one of the most effective methods for swapping between various tokenized variants of Bitcoin, such as WBTC, renBTC, and sBTC.

To access more crypto news: cryptodataspace.com

Crypto Data Space
Sources:TheBlock
Written by
Aziz KARTAL

Aziz Kartal is 21 years old. He is a student at the Gazi University, Department of Electrical and Electronical Engineering. He works as content writer, researcher and social media manager. He generally research about Web3, Blockchain Security and Cybersecurity.

Related Articles

Bitcoin Price Volatility Expected After U.S. Election: What Analysts Predict for BTC

Bitcoin's price volatility is expected to increase following the U.S. presidential election,...

Bitcoin Options Market Turns Cautious: Higher Demand for Puts Than Calls Before Election

Bitcoin Options Market Turns Cautious: Higher Demand for Puts Than Calls Before...

What is Fenerbahçe Token? Meaning and Advantages for Fans

Fenerbahçe Token is a digital asset launched by the Fenerbahçe Sports Club,...

Polkadot News – Polkadot vs. CYBRO: Which Crypto Will Lead the Market in 2024?

CYBRO, with its AI-powered DeFi solutions and 1200% growth potential, is positioning...