Savings crvUSD

by Curve Finance

Current APY
0.65%
30d Avg APY
1.36%
90d Avg APY
4.21%
TVL
$20.4M

What is scrvUSD?

scrvUSD is the savings version of crvUSD, Curve Finance's native stablecoin. By depositing crvUSD into the scrvUSD vault, holders earn yield generated by Curve's lending markets. scrvUSD is an ERC-4626 vault token, making it composable with other DeFi protocols. It represents the simplest way to earn yield on crvUSD holdings.

How does scrvUSD generate yield?

The yield comes from interest paid by borrowers who mint crvUSD using crypto collateral on Curve's lending platform. Curve uses a novel mechanism called LLAMMA (Lending-Liquidating AMM Algorithm) that gradually converts collateral as prices decline rather than performing sudden liquidations. Interest rates are determined algorithmically based on utilization. Revenue from borrowing interest flows into the scrvUSD vault, increasing the exchange rate over time.

Who issues crvUSD and scrvUSD?

crvUSD is issued by Curve Finance, one of the foundational DeFi protocols specializing in stablecoin and pegged asset trading. Curve launched in 2020 and operates the largest stablecoin DEX by volume. The protocol is governed by veCRV (vote-escrowed CRV) token holders. crvUSD launched in 2023 and uses Curve's deep expertise in stablecoin mechanics and AMM design to offer a differentiated lending product.

Risk profile

scrvUSD has a moderate risk profile with some unique characteristics. The LLAMMA soft-liquidation mechanism is innovative but relatively newer compared to traditional liquidation models used by Aave or Maker. This means the risk model has less historical data to validate it through extreme market conditions. However, crvUSD has successfully navigated several market downturns since launch. Smart contract risk is present but mitigated by extensive auditing and Curve's established track record. The yield is organic, coming from genuine borrowing demand rather than token emissions.

Peg and redemption

scrvUSD can be redeemed for crvUSD at any time with no lock-up period. The exchange rate only increases over time. crvUSD maintains its peg through PegKeeper contracts that automatically mint or burn crvUSD in Curve pools to stabilize the price, combined with arbitrage incentives. crvUSD is deeply liquid on Curve's own pools, making large swaps efficient with minimal slippage.

Key Risk Factors

  • Smart contract risk in the Curve/crvUSD lending system
  • crvUSD depeg risk, crvUSD is backed by crypto collateral with LLAMMA soft-liquidation
  • Yield variability based on crvUSD borrowing demand
  • Novel liquidation mechanism (LLAMMA) is relatively untested compared to traditional liquidation

How to Get scrvUSD

  • Curve Finance app (curve.fi), instant withdrawal
  • Secondary market swaps on Curve pools
  • Stable Yields interface (0.1% Enso routing fee)

Details

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