TL;DR: crvUSD’s borrow rate has been very volatile because new mint markets (like YieldBasis) made Peg Stabilization Reserve (PSR) balances swing harder, causing sharp rate changes. Curve DAO just approved two key fixes: increasing TargetFraction to reduce sensitivity to PSR fluctuations and lowering rate0 to make borrowing cheaper. These changes should smooth volatility, stabilize the peg, and make Llamalend borrowing more predictable. More upgrades—like EMA smoothing—are coming next to further steady the system.

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