Key Points:
- Reserve, the stablecoin protocol, has launched a $20 million power move in the Curve Wars.
- Since its inception in 2020, the protocol’s eUSD RToken has generated $5.7 billion in transaction volume in South America using the protocol’s RPay app.
- It is now one of the top ten largest CVX holders.
According to a June 20 announcement, stablecoin protocol Reserve is investing $20 million in the governance tokens of yield farming applications Curve, Convex, and Stake DAO.
The investment aims to boost the liquidity of the Reserve’s stablecoins, known as RTokens. The protocol will purchase governance tokens from Curve, Convex Finance, and StakeDAO in its biggest investment to yet.
Reserve, based in California, is the company behind the Reserve Protocol, which enables users to create asset-backed stablecoins known as RTokens that are tied to the US dollar.
Reserve is a stablecoin system that enables users to build their own currencies that may be backed by any asset. It has established stablecoins such as Electronic USD (eUSD), High-Yield USD (hyUSD), Reserve (RSV), Reserve Dollar (RSD), and ETH+.
Since its inception in 2020, the protocol’s eUSD RToken has generated $5.7 billion in transaction volume in Latin America using the protocol’s RPay app. Other RTokens include the dollar-pegged stablecoin High Yield USD and the Ether staking index ETHPlus.
Reserve was already the seventh-largest holder of Convex tokens before to the news, behind only Mochi, Redacted, JPGd, Badger, Clever, and FRAX. These tokens were obtained as a result of the protocol’s significant usage of Convex to generate yield for its users.
PayPal co-founder Peter Thiel and OpenAI co-founder and CEO Sam Altman are among those who have invested in the firm. Coinbase Ventures and the crypto giant Digital Currency Group have also invested in the company.
According to the team, this additional $20 million investment may enable new RToken features like collateralized loans, wallet solutions, tokenizing real-world assets, and more transparent financial platforms.
The $20 million investment may come as pleasant news to CRV token holders since CRV hit a one-year low on June 15. The new low was partly related to the scandal over suspected Aave loans taken out by Curve’s founder.
Reserve is already one of the top ten largest holders of CVX, Convex Finance’s governance token. But, according to DAO CVX Tracker, its 970,000 CVX governance tokens are dwarfed by the likes of Frax, which possesses over 3.6 million token.
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Harold
Coincu News
Source: https://news.coincu.com/196633-reserve-to-join-curve-wars/