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

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

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers

article-image

If the president breaks the Fed, he’ll own the budget problems