Curve DAO has passed and executed a governance proposal to integrate Mountain Protocol’s USDM stablecoin into the crvUSD PegKeeper system, with a 10 million crvUSD debt ceiling. The change, executed on 23 October, allows the PegKeeper to mint and burn crvUSD against USDM in order to help stabilize crvUSD’s dollar peg, expanding Curve’s monetary policy toolkit and diversifying the stablecoins backing crvUSD. PegKeepers are on-chain contracts that help maintain crvUSD’s peg by adjusting crvUSD supply when its market price diverges from $1, using specific stablecoin pools as the mechanism. By adding USDM to the PegKeeper Regulator, setting a 10M crvUSD debt ceiling for it, and incorporating USDM into crvUSD’s monetary policies as a USD price oracle, Curve positions USDM alongside other major stablecoins already used in the system, including USDT (25M ceiling), USDC (25M), and pyUSD (5M after a recent reduction). This integration is intended to strengthen peg resilience while spreading risk across multiple issuers and collateral types. USDM, launched in September 2023 by Mountain Protocol, is a regulated, permissionless, yield‑bearing stablecoin fully backed and overcollateralized by U.S. Treasuries, with yield (around 5% APY at the time of the article) rebased to holders. It is issued by a prudentially regulated entity under the Bermuda Monetary Authority and had a supply of about 59.3 million, primarily on Ethereum and some on L2s, when the proposal went live. Curve highlights that integrating a Treasury‑backed, yield‑bearing asset into crvUSD’s PegKeeper framework brings an additional yield source and regulatory profile into its stablecoin infrastructure, while an existing USDM/crvUSD pool on Curve, supported by a gauge and incentives from Mountain Protocol, offers combined base and CRV reward yields to liquidity providers.

AI-generated background, compiled from web sources — not editorial content.

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