Curve Finance may be the latest DeFi project joining the race to ship a decentralized stablecoin, according to details emerging from a cryptocurrency event.
SCB 10X — a Thailand-based investment firm and the organizers of an event called Redefine Tomorrow 2022 — tweeted today that Curve Finance founder Michael Egorov discussed the possibility of an upcoming stablecoin at the event.
When questioned in a fireside chat whether Curve had plans of a stablecoin Egorov replied, “Over-collat. That's all I can say for now,” according to the event organizers.
Here, “over-collat” is short for over-collateralized, a type of stablecoin that is backed by excess collateral, usually in the form of other cryptocurrency held in a reserve. This is the same design used by Dai, the most popular decentralized stablecoin in the Ethereum ecosystem.
Redefine Tomorrow 2022 is an ongoing virtual event organized by SCB 10X. There is no recording yet available of the event and Egorov has not replied to a message asking for confirmation of his comment.
Curve is currently the fourth-largest decentralized protocol, with more than $5.9 billion locked to its platform across its markets on ten blockchains.
The news comes at a time when the crypto market has been struggling to recover from a price crash triggered by the collapse of the algorithmic stablecoin UST.
DeFi projects have since been floating the idea of launching their own stablecoins. On July 7, Aave, a popular lending protocol, came out with plans of launching its own stablecoin called GHO.
Plus, stablecoins like USDD and USN, which were launched with similar mechanisms to UST, have since pivoted toward collateralized models, while remaining decentralized.