The decentralized exchange Curve Finance recently launched a new decentralized stablecoin Savings crvUSD (scrvUSD), and on November 2, initiated a new proposal to allocate 10% of the total revenue from another stablecoin crvUSD to the scrvUSD treasury, allowing scrvUSD holders to continuously earn revenue. (Background: Can the signature reward pool activities supported by Curve and Synthetix rescue WBTC?) (Background information: Analysis of the liquidation incident of Curve founder: Why was he indifferent during the third round of the DeFi defense war?) The decentralized exchange Curve Finance recently launched a new decentralized stablecoin Savings crvUSD (scrvUSD), and on November 2, initiated a new proposal to allocate 10% of the total revenue from another stablecoin crvUSD to the scrvUSD treasury, allowing scrvUSD holders to continuously earn revenue. Curve Founder: The proposal aims to promote the growth of crvUSD. In response, Curve founder Michael Egorov explained in a post on November 3 that the ultimate goal of this proposal is to promote the growth of crvUSD, while he also detailed how the proposal would lower the borrowing rate of crvUSD: Many people seem to not understand the logic behind scrvUSD. In short, scrvUSD will expand the adoption of crvUSD: .scrvUSD deposit rate = HODL rate (the return that people agree to receive for holding crvUSD); .If borrowing rate < HODL rate: cannot scale, need to lower risk premium (through security audits, positioning, etc.); .If borrowing rate > HODL rate: scrvUSD can scale crvUSD (for example, 15% > 8%, so we are already in this situation!); .Increasing supply will gradually reduce the borrowing rate that people accept, so we still need to continue to work on lowering the risk premium. Many don't seem to understand the real reason behind scrvUSD. Briefly: it can scale crvUSD. Not always such a method can, but for us it can: – scrvUSD savings rate = HODL rate (what people agree to be paid to hodl crvUSD);– If borrow rate < HODL rate -> cannot scale, need to… https://t.co/Icc7rmHY6T — Michael Egorov (@newmichwill) November 2, 2024 In this regard, Curve community member @HaowiWang also recently supplemented this mechanism on Twitter: What is special about scrvUSD? It is a decentralized, over-collateralized stablecoin that helps users easily earn passive income. Currently, half of Curve DAO's revenue comes from crvUSD, rewarded to veCRV stakers. The new revenue model: Now, 10% of crvUSD revenue will flow into a dedicated revenue distribution contract, meaning that scrvUSD holders can earn continuous rewards and share in the growth of the Curve ecosystem. Innovative pricing mechanism: The pricing mechanism of crvUSD controls the borrowing rate; the closer it is to the price floor, the higher the borrowing cost, thus maintaining stability. With the launch of scrvUSD staking, the demand for crvUSD increases, borrowing costs decrease, and protocol revenue will also increase. Potential earnings for stakers: With a total value locked (TVL) of $60 million, if $6 million is used for staking, a monthly dividend of $68,000 can be obtained, equivalent to an annualized return of over 10%, and it is completely decentralized. Major release: $scrvUSD – the next big move of Curve DAO! @CurveFinance scrvUSD, marking an important step in the development of the Curve ecosystem! What is special about scrvUSD? It is a decentralized, over-collateralized stablecoin that helps users easily earn passive income. Currently, half of Curve DAO's revenue comes from crvUSD, rewarded to veCRV… — haowi.eth (@HaowiWang) November 3, 2024 This proposal will be detrimental to veCRV holders in the short term. Although theoretically, this proposal may bring more income to Curve governance members, Curve community member crv.mktcap.eth also pointed out that in the short term, this proposal will adversely affect veCRV holders: Currently, Curve distributes all revenues from crvUSD to veCRV (locked tokens representing CRV) holders; if this proposal is passed, it means that the revenue for veCRV holders will decrease. In the long term, if it can indeed increase the supply and revenue of crvUSD, it will still be beneficial for veCRV holders. Lastly, it is worth mentioning that this proposal has already received about 92% voting support and will conclude the voting process on November 9. CRV increased by 3.7% in the past 24 hours. According to CoinGecko data, Curve token CRV has not performed well this year, having fallen by 58% over the past year, currently trading at $0.2375, with a 3.7% increase in the past 24 hours. Whether CRV can rise due to this new proposal remains to be seen. Related reports Curve proposal to remove TUSD: SEC fraud risk, why did once favored Binance token collapse so quickly? Whale assistance, Curve founder re-mortgages CRV! Paying off a $70 million debt to Aave Detailed analysis of the mathematical coincidences between Curve and Uniswap: how did they take different paths? "Curve's new proposal: Distributing '10% revenue' of crvUSD stablecoin to scrvUSD holders" was first published on BlockTempo (the most influential blockchain news media).