Curve Finance has opened a vote for a new feature to its users.
Curve Finance has launched a vote to add Wrapped Ether (WETH) collateral for the crvUSD stablecoin. If the vote is approved, users will be able to use WETH to convert to the crvUSD stablecoin and mint up to $200 million.
Curve Finance Launches Vote to Add Wrapped Ethereum Collateral for crvUSDs
Curve Finance, a decentralized exchange, is voting to accept WETH as collateral for printing and borrowing the crvUSD stablecoin. If approved, platform users will be able to use WETH as collateral and the exchange will be able to mint a corresponding amount of crvUSD stablecoin. WETH represents Ethereum tokenized on the Ethereum Blockchain and its value is pegged to the one-to-one value of ETH.
With this vote, a debt ceiling of $200 million was set for WETH collateral, meaning only 200 million crvUSD stablecoins can be minted with WETH collateral.
Curve currently accepts Wrapped Staked Ether and Staked Frax Ether as collateral. The crvUSD stablecoin was launched on the Ethereum mainnet last month by the developers of Curve Finance. crvUSD has a similar structure to the DAI stablecoin and provides its value by being over-collateralized by backed crypto assets.
Crypto users can mint crvUSD stablecoin on Curve platform via overcollateralized loans. This stablecoin is powered by an algorithm called Lending-Liquidating AMM and works by constantly liquidating and automatically depositing collateral.
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