08 June 2023 10:49, UTC
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Decentralized exchange Curve Finance added support for wrapped staked ether (wstETH) as collateral for minting and borrowing its decentralized stablecoin crvUSD.
The vote to introduce this collateral passed on June 8 and was enacted on-chain. It passed with 100% of votes in support and met a sizeable 84.5% quorum.
What this means is that the exchange’s users can put up their wstETH as collateral and mint a portion of that value in the exchange’s native crvUSD stablecoin. The user has to pay a 6% borrow rate, at current values. If the value of the collateral drops, it will get gradually liquidated in order to keep the position afloat.
There is currently a 150 million crvUSD debt ceiling, equivalent to $150 million, which means only this much crvUSD can be minted using wstETH as collateral.
The platform also supports staked frax ether (sfrxETH) as collateral. This is the staked version of Frax Finance’s token that’s loosely pegged to the value of ether.
Both of these markets only exist on the beta version of Curve. The developers at Curve Finance first deployed crvUSD on the Ethereum mainnet last month.
Sourced from cryptonews.net.