Curve Founder: Rapid Stablecoin Adoption Amplifies Volatility Risks, crvUSD Needs Phased Expansion

Odaily News, Curve founder Michael Egorov stated on platform X that the current liquidity scale between the stablecoin crvUSD and mainstream crypto assets (primarily Bitcoin) is already very large. However, this also means that when BTC fluctuates, it could exert greater pressure on crvUSD's peg. There is a need to consider how to further expand the system's capacity. This situation reminds him of the early stage when USDT became the primary trading stablecoin in the crypto market: at that time, the temporary de-pegging of the stablecoin was not a structural issue but was caused by the limited throughput capacity of bank redemption channels. In contrast, crvUSD belongs to the CDP (Collateralized Debt Position) stablecoin model, thus requiring responses to related pressures from different mechanism levels. Currently, the demand for crvUSD mainly comes from yield-based scenarios such as Yield Basis, and subsequent adjustments will also primarily focus on this side. However, as the usage of stablecoins in trading scenarios continues to increase, the adoption scale of stablecoins must expand in a gradual manner, a process that is itself inevitable.