Lending protocol Curve Finance has introduced a decentralized yield-bearing stablecoin, Savings-crvUSD (scrvUSD), designed to offer low-risk returns to investors and contribute to the scaling of the underlying crvUSD stablecoin.
Curve Finance users can mint scrvUSD by depositing crvUSD into the scrvUSD module. The deposited crvUSD is overcollateralized by various digital assets, including Ether and Wrapped Bitcoin. Curve Finance has assured users that their funds in scrvUSD are never rehypothecated or moved from their secure vaults.
This mechanism helps stabilize borrowing rates for the crvUSD stablecoin. Curve Founder Michael Egorov expressed optimism about the sustainability of the new system, noting that it already holds over 3 million crvUSD.
