crvUSD Marks Two Years of Growth and Innovation: Stablecoin Surpasses $179M Circulating Supply Milestone
On May 14, 2025, Curve’s overcollateralized stablecoin crvUSD celebrated its second anniversary, shortly after hitting a new milestone.
Just days earlier, on May 8, its circulating supply reached an all-time high of $179.8 million, signaling growing demand and deeper integration into DeFi markets.
What Powers crvUSD’s Expansion?
crvUSD offers DeFi users a predictable, secure way to borrow with dollar exposure. Built with LLAMMA Collateral Protection and Peg Stability Reserves, it helps borrowers avoid sudden liquidations while maintaining a price near $1.
Unlike many stablecoins, crvUSD is backed by overcollateralized assets and designed for smoother volatility. Borrowers benefit from lower rates, while liquidity providers enjoy more consistent returns.
scrvUSD and Resupply Ignite Market Momentum
The release of scrvUSD in late 2024 marked a major turning point. This yield-bearing version of crvUSD initially offered up to 20% APR, attracting significant attention. By early 2025, yields stabilized around 1–3%, but interest in crvUSD continued to rise.
scrvUSD’s success created a demand feedback loop: users acquired more crvUSD to earn with scrvUSD, which boosted overall borrowing and liquidity activity. Lending protocol Llamalend saw its TVL soar as a result, transforming it into one of DeFi’s most cost-effective platforms.
Then in March 2025, the Resupply protocol launched, letting users borrow reUSD against scrvUSD and cycle funds back into the system. This leveraged yield farming engine pushed TVL on Llamalend from $38 million to $84 million in just days, further driving crvUSD usage.
Rates Drop, Stability Holds Strong
This increased activity led to a dramatic drop in borrowing rates, from a volatile 10–50% range to a steady 1–4%. Lower rates meant more predictable borrowing, improving the experience for users and reinforcing Curve’s position as a stablecoin lending leader.
crvUSD’s Peg Stability Reserves also kept the token’s value anchored. These automated agents mint or burn crvUSD as needed, stabilizing the price while channeling arbitrage profits to the Curve DAO. Since Resupply’s launch, over $50 million in crvUSD has been minted for peg control.
Growing Across Chains and Protocols
crvUSD is now live on Optimism, Sonic, and integrated with protocols like Resupply and YieldBasis. It supports multiple collateral types, including cbBTC, weETH, and LBTC, expanding its reach and flexibility.
Curve plans to scale crvUSD further with tools like YieldBasis, which will mint crvUSD for 2x leveraged, impermanent-loss-protected strategies. Upgrades to legacy smart contracts are also in development to improve efficiency and borrowing power.
Looking Ahead: Education and Adoption
Educational outreach is set to grow, helping more users understand crvUSD’s unique loan structure and liquidation protections. With its third year now underway, crvUSD is positioned to become a cornerstone of decentralized finance, offering users a robust, efficient, and scalable stablecoin ecosystem.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
