Curve Finance’s native stablecoin, crvUSD, mercurial depegged on Aug. 3, reacting to an unsafe atmosphere surrounding the protocol after its contemporary exploit. All over the day, the stablecoin fell by as powerful as 0.35% earlier than regaining its peg to the US buck.
Curve’s crvUSD uses a mechanism for sustaining its peg referred to as the PegKeeper algorithm, which manages the payment of interest and liquidation ratio per the stablecoin provide and search files from to retain its cost. In other words, it ensures that the crvUSD cost is nicely backed by collateral while balancing provide and search files from.
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