When you hear crvUSD, an algorithmic stablecoin launched by Curve Finance to compete with USDC and DAI. Also known as Curve USD, it’s not backed by cash reserves alone — it uses a mix of collateral and dynamic debt mechanics to stay pegged to $1. Unlike traditional stablecoins, crvUSD doesn’t rely on banks or audits. It runs on smart contracts, making it a core part of the DeFi ecosystem.
crvUSD works by letting users deposit crypto like ETH or WBTC as collateral, then borrowing crvUSD against it. But here’s the twist: if the value of your collateral drops too much, the system automatically sells part of it to cover the loan — no manual liquidations needed. This is powered by Curve Finance, a decentralized exchange focused on low-slippage stablecoin swaps. Also known as Curve DAO, it’s the same team behind the most-used stablecoin trading pairs on Ethereum. The system also uses algorithmic stablecoin, a type of digital currency that maintains its value through code, not reserves. Also known as seigniorage-style stablecoin, it’s the same model used by projects like TerraUSD — but crvUSD avoids their biggest failure by never letting the peg break through forced liquidations and over-collateralization. That’s why it’s seen as one of the safer algorithmic stablecoins in 2025.
crvUSD isn’t just another token. It’s a tool for DeFi users who want to borrow without giving up control of their assets. It’s used in lending protocols, yield farms, and as a base currency for trading pairs on DEXs. You’ll find it paired with USDC, DAI, and even ETH in liquidity pools. And because it’s built on Curve’s infrastructure, it has lower fees and better price stability than most competitors. But it’s not for everyone. If you’re new to crypto, the collateral rules can be confusing. If you’re holding it for long-term savings, remember: it’s still crypto, not a bank account.
Below, you’ll find real breakdowns of how crvUSD fits into the bigger picture — from how it compares to other stablecoins, to the risks of using it in volatile markets, and even how it’s being used (or avoided) by traders right now. No fluff. Just what you need to know to use it safely or avoid it wisely.
Curve Finance is the leading decentralized exchange for stablecoin swaps with near-zero slippage and fees as low as 0.04%. Learn how it works, why crvUSD matters, and whether it's right for you.