The popular DeFi protocol Curve Finance’s founder hints at the possible launch of a stablecoin from the platform even after the TerraUSD debacle.
As per a tweet from SCB 10X, a Thai investment firm, the topic of a native Curve stablecoin was raised today at a web3 summit during a virtual chat between Curve CEO and founder Michael Egorov and The Spartan Group co-founder Kelvin Koh.
When asked if Curve would launch a stablecoin, Egorov stated flatly that it would be over-collateralized, adding, “That’s all I can say for now.”
Stablecoins in the DeFi space are either over-collateralized, such as MakerDAO’s DAI, or under-collateralized, such as Terra’s UST.
Following UST’s collapse in May, the issue of stablecoin collateralization has come to the forefront for many. Curve’s stablecoin will most likely follow a model similar to DAI’s in order to avoid the fate of UST, according to Egorov’s comment.
This sudden revelation from Curve Finance comes at a time as just two weeks back Aave Protocol introduced GHO stablecoin pegged to USD which is subject to the approval of the Aave community DAO.
