Decentralized exchange Curve Finance recently launched a new decentralized stablecoin called Savings crvUSD (scrvUSD). On November 2, a new proposal was initiated to allocate 10% of the total revenue from another Curve stablecoin, crvUSD, to the scrvUSD vault, allowing scrvUSD holders to continuously earn returns.
(Previous context:
Rescuing WBTC? Can the signature reward pool activity supported by Curve, Synthetix, and others succeed?
)
(Background supplement:
Analysis of the liquidation event of Curve’s founder: The third round of DeFi defense war, why is he indifferent?
)
Contents of this article
Curve Founder: The proposal aims to drive crvUSD growth
The proposal will adversely affect veCRV holders in the short term
CRV rises 3.7% in the past 24 hours
Decentralized exchange Curve Finance recently launched a new decentralized stablecoin called Savings crvUSD (scrvUSD). On November 2, a new proposal was initiated to allocate 10% of the total revenue from another Curve stablecoin, crvUSD, to the scrvUSD vault, allowing scrvUSD holders to continuously earn returns.
Curve Founder: The proposal aims to drive crvUSD growth
In response, Curve Founder Michael Egorov explained in a post on November 3 that the ultimate goal of this proposal is to drive the growth of crvUSD. He further detailed how the proposal would reduce the borrowing rate of crvUSD:
Regarding this, Curve community member @HaowiWang recently
added
on Twitter to further explain this mechanism:
The proposal will adversely affect veCRV holders in the short term
Although theoretically, this proposal could indeed bring more revenue to Curve governance members, Curve community member crv.mktcap.eth also
pointed out
that in the short term, this proposal will negatively impact veCRV holders:
Finally, it is worth mentioning that the proposal has currently received about 92% voting support and the voting process will conclude on November 9.
CRV rises 3.7% in the past 24 hours
According to CoinGecko
data
, the Curve token CRV has not performed well this year, plummeting 58% over the past year. At the time of writing, it is priced at $0.2375, having risen 3.7% in the past 24 hours.
Whether CRV can be encouraged by this new proposal to rise in the future is worth our continued attention.
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