Curve mulls dropping TUSD as crvUSD backing after SEC charges
The regulator alleged TUSD was 99% backed by a risky offshore fund, raising concerns about using TUSD to back Curve’s stablecoin.
Curve Finance, a decentralized exchange (DEX), is considering dropping TrueUSD (TUSD) from the list of tokens serving as collateral for Curve Stablecoin (crvUSD) after United States regulators charged TrueCoin, TUSD’s issuer, with securities law violations.
In a Sept. 25 post on Curve’s governance forum, cross-chain messaging protocol Wormhole proposed reducing the upper limit on crvUSD’s TUSD backing to zero “to fully remove exposure to TUSD due to regulatory risk and solvency concerns.”
The ‘PegKeeper’ liquidity pool backing crvUSD permits users to mint up to $10 million worth of crvUSD with TUSD.
The regulator alleged TUSD was 99% backed by a risky offshore fund, raising concerns about using TUSD to back Curve’s stablecoin.
Curve Finance, a decentralized exchange (DEX), is considering dropping TrueUSD (TUSD) from the list of tokens serving as collateral for Curve Stablecoin (crvUSD) after United States regulators charged TrueCoin, TUSD’s issuer, with securities law violations. In a Sept. 25 post on Curve’s governance forum, cross-chain messaging protocol Wormhole proposed reducing the upper limit on crvUSD’s TUSD backing to zero “to fully remove exposure to TUSD due to regulatory risk and solvency concerns.” The ‘PegKeeper’ liquidity pool backing crvUSD permits users to mint up to $10 million worth of crvUSD with TUSD.Read more