💲Curve Deploys crvUSD Stablecoin
Curve has deployed its highly anticipated crvUSD stablecoin on Ethereum, giving DeFi users a new decentralized alternative. Meanwhile, the Fed may pause after the latest 25bps hike, as policymakers assess the impact of recent rate hikes on the economy. A new Bitcoin token has overtaken WBTC on Avalanche, and TUSD lending rates spiked after the dollar-pegged stablecoin briefly rallied to $1.20.
✍️ In today’s newsletter:
- Curve deploys long-awaited crvUSD stablecoin
- Markets trade sideways after Fed hike
- BTC.b overtakes WBTC on Avalanche
- $2B TUSD stablecoin briefly spikes to $1.20
📈 Markets in the last 24 hrs:
Curve Deploys crvUSD Stablecoin On Ethereum
TLDR Curve Finance has launched its new stablecoin, crvUSD, on Ethereum, allowing users to mint crvUSD against collateral assets deposited in the protocol and access liquidity while earning yield on their deposits. The stablecoin will introduce a novel lending-liquidating AMM algorithm, or LLAMMA, to ease the effects of liquidations on borrowers.
SO WHAT The launch of crvUSD and the upcoming release of Aave's GHO stablecoin highlight the renewed emphasis on decentralization in the DeFi sector and the increasing demand for decentralized stablecoin alternatives to centralized pegged assets.
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Fed Hints At Pause After Another 25bps Hike
TLDR The US Federal Reserve hiked interest rates by another 0.25%, marking the 10th straight increase. Equities turned lower but crypto markets remained mostly unchanged. The central bank said that any further increases would be data-dependent. Decentralized exchange Curve's CRV token is up nearly 7%, while Rocket Pool (RPL) is up over 5%.
SO WHAT A more accommodative stance from the US central bank would likely be a tailwind for crypto, which tends to thrive along with other risk assets like stocks when there is ample liquidity.
BTC in DeFi
New Bitcoin Token Overtakes WBTC on Avalanche
TLDR BTC.b, a wrapped Bitcoin token issued on the Avalanche network, is gaining popularity and outpacing its long-standing incumbent, Wrapped Bitcoin (WBTC). BTC.b can be issued by bridging Bitcoin to Avalanche using the Core extension and then bridged to other blockchains using LayerZero.
SO WHAT The growing popularity of BTC.b highlights the appetite for decentralised and trustless alternatives to centralised bridges that underpin much of cross-chain DeFi. Bridge hacks accounted for $2bn or two-thirds of the total losses to crypto exploits last year.
TUSD Lending Rates Spike After Stablecoin Briefly Rallies To $1.20
TLDR Opportunistic DeFi traders took advantage of a liquidity crunch and pushed lending rates for TrueUSD (TUSD), a centralized stablecoin favored by Binance, to well over 100%. The surge in borrowing demand was due to TUSD briefly surging to $1.20 on Binance, while trending closer to $1.03 on rival exchanges.
SO WHAT The recent history of stablecoin depegging events highlight the need for caution and risk management when using stablecoins in trading and investment strategies.