Curve Stablecoin in the Works as Proposal Goes to Governance Vote

The Curve community will vote to enable stablecoin pools which will use oracle price feeds

article-image

Ivan Babydov/Shutterstock.com modified by Blockworks

share

It is no secret that Curve is planning to launch its own stablecoin.  

And now, the community governance for Curve Protocol will be voting on whether or not it will enable stablecoin pools that use oracle price feeds.

Oracle price feeds are independent data feed operators that monitor real-time information from financial markets and then feed price data onto the blockchain.

This will be a requirement for crvUSD. The stable token is designed using an algorithm called the Lending-Liquidating AMM (LLAMMA), a cross between traditional AMM and a lending market, according to its white paper

“Instead of liquidation resulting in loss of collateral, LLAMMA will gradually shift user deposits between the collateral and crvUSD as the price of the collateral changes,” Blockworks Research analyst Dan Smith said. 

In the case where the price of the collateral used to mint crvUSD falls — for example, ETH — LLAMMA will convert crvUSD back into ETH to prevent insolvency, Smith said.  

“The price of the collateral must be known for this to function properly, so the recent proposal that introduces new Curve pools that can pull price from an external oracle is critical infrastructure for the launch of Curve’s stablecoin,” he said.

Loading Tweet..

Voting went on chain on Feb. 13 and will close on Feb. 20. A quorum of 30% is required for the vote to pass. So far, 100% of voters are in favor of the proposal, but only 2.09% of votes have been cast. 

The native token of CurveDAO, CRV — which is used to vote on proposals — has seen its price increase over the past two days, from $0.92 to $1.09. 

One factor is the decision by the US SEC and New York financial regulators to crack down on BUSD, the Binance-branded stablecoin issued by Paxos and backed by cash and US Treasurys.

As pressure from lawmakers tests the mettle of centralized stablecoin providers, there may be a window for more decentralized stablecoins to gain traction.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /
article-image

Zac Prince spearheads Galaxy’s push into consumer banking with high-yield cash, crypto, and stock trading features

by Blockworks /