According to Odaily Planet Daily, Wormhole initiated a new proposal in the Curve governance forum. Due to regulatory risks and solvency issues, it proposed to reduce the upper limit of crvUSD collateral TUSD to zero to completely eliminate exposure to TUSD.
The proposal also proposes to reduce the amount of PayPal's stablecoin PYUSD that can be minted from $15 million to $5 million, so that the reliance on each PegKeeper is appropriate to the importance of the respective pool. Currently, the main collateral for minting crvUSD also includes ETH and WBTC.
On September 24, the U.S. SEC reached a settlement with TrueCoin and TrustToken regarding alleged fraud and unregistered sales of investment contracts involving TrueUSD. The allegation stated that 99% of TUSD’s reserve funds were invested in high-risk offshore funds, raising concerns about its security and solvency.
