Plain English
crvUSD is Curve Finance’s native USD-pegged stablecoin, launched in 2023. Borrowed against crypto collateral (ETH, wBTC, sfrxETH, wstETH). Uses a novel Lending-Liquidating AMM Algorithm (LLAMMA) that liquidates positions gradually as price falls rather than at a single threshold.
How it actually works
Users deposit collateral and mint crvUSD. As collateral price falls, LLAMMA continuously rebalances the position from collateral into crvUSD across price bands — softening liquidations into a gradual unwind rather than a cliff. Revenue from stability fees flows to veCRV holders.
What it means for you
crvUSD is a sophisticated decentralized stablecoin. For HNW positioning, borrowing crvUSD against ETH or wstETH offers smoother liquidation behavior than Aave or Compound at comparable LTV. The trade-off is somewhat thinner liquidity than DAI or USDC and a more complex risk model.
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Educational content only. Not investment, tax, or legal advice.