crvUSD

crvUSD is a stablecoin issued by Curve Finance and intended to be pegged to the US dollar. Users deposit crypto assets such as ETH, wstETH or WBTC as collateral and borrow crvUSD against them; the aim is for every crvUSD in circulation to be backed by crypto collateral of higher value. The token is minted on Ethereum and also moved to other networks, such as Arbitrum and Base, via bridges.

The system's distinctive component is LLAMMA. This mechanism holds collateral in an automated market maker spread across price ranges, or bands. When the collateral price enters these ranges, the position is not liquidated in one go; the collateral is gradually converted into crvUSD and converted back if the price recovers. PegKeeper contracts, which help maintain the peg, intervene in the balance between supply and demand in the Curve pools where crvUSD is paired with other stablecoins. The borrowing rate is also adjusted according to the market price of crvUSD.

Deviations of crvUSD from its dollar peg may be related to sharp declines in collateral assets, the behavior of LLAMMA under stressed market conditions, and oracle and smart contract risks. Lzzo.com shows DefiLlama's US dollar reference price for crvUSD; the chart on the page is also built from this source's historical data.