Curve - crvUSD-USDC
Description
The strategy utilizes crvUSD, an overcollateralized stablecoin issued by Curve and backed by ETH and Ethereum liquid staking derivatives. crvUSD uses an innovative liquidation mechanism to maintain the peg and prevent bad debt from accruing in the protocol.
Risk Level — 'A'
Narrative
Being backed by multiple liquid staking tokens, crvUSD can be related to the LST narrative, aiming to improve Ethereum staking composability and user experience.
Why invest
The strategy utilizes reliable protocols, as well as provides above-market returns, making it a perfect fit for investors looking to tap into increased stablecoin yields in exchange for providing liquidity for a fairly novel product.
What’s inside
Funds are converted into crvUSD and USDC and are paired together in order to provide liquidity on Curve via Convex for additional rewards.
What makes it stand out
crvUSD is a novel product by Curve with a unique design, backed by some of the best collateral assets DeFi has to offer.
Safety Scoring
| Simplicity - 5/5 | Longevity - 3/5 | Protocol safety - 4/5 | Overall score - 4/5 |
|---|---|---|---|
Strategy is easy to understand and execute. No leverage is involved. Losses are highly unlikely. | Strategy has been running for 1-4 months | Protocol contracts are audited/verified by at least two reputable audit firms. A multi-sig with an appropriate threshold is required and/or contracts are immutable. | Low risk |
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