CurveUSD

CurveUSD is a CDP lending protocol with no cross-collateralization behind the $crvUSD stablecoin.

It was designed with a unique approach to price stability and liquidation resistance.

$crvUSD is a collateral-backed, decentralized stablecoin, similar to DAI, but with some unique aspects:

• Instead of relying on governance-controlled minting caps, CurveUSD uses special contracts (PegKeepers) to automatically maintain its peg by incentivizing liquidity and arbitrage between Curve pools and the broader market.

• Curve’s approach to managing collateral is known as LLAMMA (Lending-Liquidating AMM Algorithm). Instead of triggering hard liquidations when collateral falls too much (as with most protocols), LLAMMA gradually converts your collateral into USD as its value drops, and converts it back to crypto as the value recovers. This smoothes out volatility and avoids sudden liquidations.

• The soft liquidation mechanism means fewer liquidation penalties for users, and more stability across markets. This is a big advantage in turbulent conditions.

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Related Articles:

• Dashboard & Use-case

• Available assets & compatibility

• Does CurveUSD charge any fees?