Decentralized exchange Curve Finance recently launched a new decentralized stablecoin, Savings crvUSD (scrvUSD). On November 2, a new proposal was initiated, planning to allocate 10% of the total revenue from another stablecoin under Curve, crvUSD, to the scrvUSD treasury, allowing scrvUSD holders to continually receive income.
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Contents of the article:
Curve Founder: The proposal aims to boost crvUSD growth
The proposal will be detrimental to veCRV holders in the short term
CRV rose 3.7% in the last 24 hours
Decentralized exchange Curve Finance recently launched a new decentralized stablecoin, Savings crvUSD (scrvUSD). On November 2, a new proposal was initiated, planning to allocate 10% of the total revenue from another stablecoin under Curve, crvUSD, to the scrvUSD treasury, allowing scrvUSD holders to continually receive income.
Curve Founder: The proposal aims to boost crvUSD growth
On November 3, Curve founder Michael Egorov explained in a post that the ultimate goal of this proposal is to promote the growth of crvUSD. He also detailed how the proposal would lower the borrowing rate of crvUSD:
In this regard, Curve community member @HaowiWang recently supplemented the explanation of this mechanism on Twitter.
The proposal will be detrimental to veCRV holders in the short term
Although theoretically, the proposal could indeed bring more income 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:
It is worth mentioning that this proposal has currently received about 92% voting support and the voting process will end on November 9.
CRV rose 3.7% in the last 24 hours
According to data from CoinGecko, the performance of the Curve token CRV has not been good this year, plummeting 58% over the past year. At the time of writing, it is priced at $0.2375, with a 3.7% increase in the last 24 hours.
Whether CRV can be incentivized by this new proposal to achieve an increase in the future is worth our continuous attention.
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