Convex Finance: How to Earn Up to 19% vAPR with crvUSD and FRAX

Convex Finance

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.

In May, the team at Curve launched their highly anticipated stablecoin crvUSD. Curve is a stablecoin-focused decentralized exchange, offering low-fee swaps and boasting nearly $4.27B in total value locked cross-chain. However, crvUSD is a stablecoin built on the Curve protocol and relies on a novel lending-liquidating AMM algorithm (nicknamed LLAMA). LLAMA automatically swaps between collateral and the crvUSD stablecoin to avoid frequent liquidations, which in turn offers more stability to the crvUSD peg. crvUSD is one of a new class of decentralized stablecoins native to popular DeFi protocols that promises to disrupt the stablecoin sector and grow the DeFi stablecoin market exponentially in the next crypto bull run.


The current crvUSD app dashboard (see above) on the Curve website allows users to mint crvUSD against sfrxETH (a liquid staked form of ETH by Frax Finance) at a borrow rate of 10% or wstETH by Lido at a rate of 9.23%. In the future, Curve will not only allow users to mint crvUSD against single collateral assets like these ETH LSTs but also Curve LPs.

While it’s still early for crvUSD, the new stablecoin is showing real promise for mass adoption in DeFi with $37.6M crvUSD minted, backed by $53.6M in collateral, across 253 crvUSD holders (see below).


Source: crvUSD Dune Dashboard

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