Curve founder Michael Egorov has confirmed that the AMM will launch a stablecoin. There is not much more information available, except that the stablecoin will be overcollateralized.

The Curve Automated Market Maker (AMM) is set to launch an overcollateralized stablecoin, as revealed by founder and CEO Michael Egorov. The founder made the announcement at the REDeFINE Tomorrow 2022 event and offered a few thoughts surrounding the release of the stablecoin.

KK: Curve is launching a stablecoin?
ME: Over-collat. That's all I can say for now.
KK: veToken success?
ME: veToken aligns long-term incentive of governance and users. This was inspired by some disasters observed from historical mistakes of American corporates.

Egorov was speaking to co-founder and managing partner of The Spartan Group, Kelvin Koh. The latter asked him what the long-term vision for the popular AMM was, to which Egorov said that an AMM for stablecoins was needed, among other things.

Later on, the Curve founder responded in the affirmative when asked if Curve would be launching a stablecoin. Egorov responded by saying that it would be overcollateralized, and that was all that would be revealed at the moment.

Overcollateralized stablecoins are becoming a hot topic of discussion. Incidents like the TerraUSD crash have pushed peg safety into the limelight, and the extra collateral could provide a safety net against volatility.

Curve Finance is one of the market’s most popular AMMs on the market, and it’s clear how a stablecoin might add to its strength. DeFi lending platform Aave also recently announced that it would launch a stablecoin called GHO.

There is little else known about the Curve stablecoin, but it won’t be long before more details are available. One possibility could be that it could be minted against liquidity provider’s positions, which would have liquidity benefits, which Egorov touched upon in the conversation.

Egorov also briefly touched upon the topic of regulation at the web3 summit. DeFi regulation is the talk of the town, as regulators bear down on the market — especially stablecoins. Egorov’s said of his thoughts on the matter,

“Interesting to see whether regulators will tighten in DeFi or CeFi. Not sure regulators can distinguish between which is CeFi/DeFi. But clear and digestible messages from protocols are good. ‘Experimental, not safe’ for example.”

Lawmakers consider the DeFi sector to be something of a ‘wild west,’ but they do acknowledge that there are benefits to the innovative financial services. Stablecoins, however, are a major concern, with numerous authorities across the world examining the niche. U.S. lawmakers are inching close to stablecoin regulation, while G20 nations have also agreed to work on the same.

The post Curve Founder Claims an Overcollateralized Stablecoin in the Works appeared first on BeInCrypto.

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