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.

On May 14, 2025, Curve’s overcollateralized stablecoin crvUSD turned two years old, 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 provides DeFi users with a known quantity for borrowing and liquidity provision with dollar exposure. It’s also protected by LLAMMA Collateral Protection and Peg Stability Reserves to help prevent rapid liquidations and maintain a price point around $1.

Also, unlike many stablecoins, crvUSD is overcollateralized and designed for smoother volatility. Borrowers get lower rates, and liquidity providers enjoy more consistent returns.

scrvUSD and Resupply Ignite Market Momentum

The release of scrvUSD in late 2024 was a major turning point. This yield-bearing version of crvUSD initially offered up to 20% APR, quickly attracting huge interest. By early 2025, yields stabilized at 1–3%, but interest in crvUSD remained high.

scrvUSD’s success created a demand feedback loop: users bought more crvUSD to earn with scrvUSD, which boosted overall borrowing and liquidity activity. Lending protocol Llamalend saw its TVL surge 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 stable. These automated agents mint or burn crvUSD as needed, stabilizing the price while routing 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 is 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 poised to become a cornerstone of decentralized finance, offering users a robust, efficient, and scalable stablecoin ecosystem.