Curve Supports wstETH For crvUSD Collateral

Thursday, June 8, 2023

Curve Supports wstETH For crvUSD Collateral

Quick Take

  • EIP-4788 and EIP-5656 are added to Cancun.
  • Developers schedule the first call for the Holešky testnet.
  • Curve supports wstETH as collateral for minting crvUSD.
  • Aave raises a $15 million seed round for Lens Protocol.


Curve Supports wstETH For crvUSD Collateral

Curve Finance deployed a market that supports wstETH as collateral for minting its crvUSD stablecoin. The deployment follows the approval of a proposal by Curve governance, which received nearly 500 million veCRV votes, to add wstETH as a collateral type. The wstETH market has a debt ceiling of 150 million crvUSD.

Borrowing crvUSD against wstETH currently has a 6.3% borrow rate. The crvUSD system features a novel liquidation mechanism called the Lending-Liquidating AMM Algorithm (LLAMMA). The system gradually liquidates a user’s collateral into crvUSD and then attempts to reverse the liquidation when collateral prices rebound.

EIP-4788 And EIP-5656 Added To Cancun

Core developers agreed to formally add EIP-4788 and EIP-5656 to Cancun, marking the last set of EIPs to be added to the upgrade. EIP-4788 exposes Beacon Chain roots in the EVM to enable access to information on the consensus layer. EIP-5656 implements a new memory copying instruction known as MCOPY.

EIP-5920, EIP-7069, and EIP-2537, which are considered for inclusion, will not be included in the upgrade. In total, five EIPs, including 4844, 1153. 6780, 4788, and 5656, are confirmed for Cancun. Tim Beiko, the coordinator of the ACDE calls, noted that MCOPY EIP-5656 could be dropped if it slows down the progress of implementing the upgrade.

First Coordination Call For Holešky

Developers also scheduled the first coordination call for Holešky, a new testnet aiming to replace Goerli, for Thursday, June 15th at 12:30 UTC. Holešky is the first long-standing, merged-from-genesis, public Ethereum testnet. During the call, developers will discuss the genesis validator set, the initial genesis allocation, and release timelines with a targeted launch in late September.

Taiko Raises $22 Million In Funding

Taiko, an EVM-equivalent ZK-Rollup, raised $22 million across two separate funding rounds led by Sequoia China and Generative Ventures. The rounds also included angel investments from Patricio Worthalter, Anthony Sassano, and Tim Beiko. Taiko plans to use the fresh capital for growth and to accelerate technical development.

The fundraising comes as Taiko recently launched the third iteration of its ZK-EVM Alpha Testnet. The new testnet release features L3 inception layers and permissionless proposers and provers. Taiko is building a Type 1 ZK-EVM, which prioritizes full EVM-equivalence over ZK-proof generation speed.

Lens Protocol Raises A $15 Million Seed Round

Aave Companies raised a $15 million seed round for Lens Protocol, a Polygon-based Web3 social platform that provides users with ownership through NFTs. The NFTs are composable among social and video apps on a shared network. Lens Protocol plans to use the new funding to provide resources and continue the development of the Lens ecosystem. The protocol celebrated its 1 year anniversary on May 18th. Lens Protocol is also building an Optimistic scaling solution called Momoka.

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