New markets for minting crvUSD with weETH, cbBTC and LBTC as collateral are up

Curve Finance has launched three new collateral markets that allow users to mint its native stablecoin crvUSD using weETH, cbBTC, and LBTC as collateral, following a Curve DAO governance vote. These markets expand crvUSD’s backing beyond existing assets like ETH, wBTC and staked ETH derivatives, and are deployed with upgraded smart contracts intended to improve capital efficiency and the user experience when opening and managing leveraged positions. According to Curve’s announcement and its accompanying technical write‑up, the new markets support: cbBTC, Coinbase’s wrapped Bitcoin token backed 1:1 by BTC held in Coinbase custody; weETH, Ether.fi’s wrapped liquid restaking token that represents staked eETH; and LBTC, Lombard Finance’s yield‑bearing, cross‑chain Bitcoin wrapper. Each market has its own parameters and borrow caps—around 50 million crvUSD for cbBTC, 20 million for weETH, and 10 million for LBTC—reflecting their differing risk profiles. The upgrade also introduces smarter contract logic aimed at reducing slippage when users lever up, and at giving borrowers more granular control over health factors and approvals during position management. This expansion is significant because crvUSD is an overcollateralized, crypto‑backed stablecoin that relies on Curve’s LLAMMA “soft‑liquidation” mechanism rather than hard liquidations, and its growth depends on the breadth and quality of collateral markets it supports. Adding high‑profile Bitcoin and liquid (re)staking assets from Coinbase, Ether.fi and Lombard Finance deepens crvUSD’s integration across both Ethereum and BTC‑linked liquidity, potentially increasing stablecoin demand, fee generation, and Curve’s role as a multi‑asset lending and stablecoin protocol. It also aligns with a broader DeFi trend of using institutional-grade Bitcoin wrappers and liquid restaking tokens as collateral in lending and stablecoin systems.

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

More coverage

• New markets for minting crvUSD with weETH, cbBTC and LBTC as (binance.com)
• The new markets for minting crvUSD are up. Collaterals are: (x.com)
• Add Collateral cbBTC to WETH Market on Base and Mainnet (comp.xyz)
• Enhanced crvUSD Markets & New Collateral Assets Go Live (news.curve.finance)
• crvUSD Stablecoin - Spark Glossary | Spark (spark.money)

Explore the topic

• Markets
• Coinbase
• crvUSD