Curve is considering removing TUSD as collateral for crvUSD due to concerns raised by SEC allegations
Curve Finance is considering removing TrueUSD (TUSD) as collateral for its stablecoin crvUSD, due to the U.S. Securities and Exchange Commission (SEC) bringing securities law violation charges against TrueCoin and TrustToken. The charge alleges that 99% of TUSD's reserve funds are invested in high-risk offshore funds, raising concerns about its safety and solvency. A proposal has been put forward in Curve's governance forum suggesting reducing the TUSD collateral limit for crvUSD to zero, and decreasing association with PayPal's stablecoin PYUSD to mitigate related risks. Currently, the main collaterals for crvUSD include Ethereum (ETH) and Wrapped Bitcoin (WBTC).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
U.S. stocks extend gains, Dow up 1 per cent
BTC breaks above $98,000
A trader lost over $160,000 in two days on FOMO purchases of Quant and LETHIMCOOK
Crypto prices
More
