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A Tale of Two Stablecoins: crvUSD and GHO
Osgur Murphy O Kane
Key Takeaways
12 min read
  • Key reasons why GHO has failed to maintain a USD peg include a borrow rate below the market rate and a lack of fundamental demand. Solutions proposed by the community to address these issues include additional utility for GHO, changes to liquidity management, and higher borrow rates.
  • crvUSD is a relatively complex stablecoin that has performed well during the bear market. It is backed by decentralized collateral and has landed some key DeFi integrations such as being universally accepted collateral on Silo Finance.
  • Both stablecoins launched in the bear market from two of the most respected DeFi blue chips and have large scope to grow. Ensuring fundamental demand throughout DeFi and user confidence will be key to their future success.


This report examines the performances of GHO and crvUSD - which were among the most anticipated DeFi launches this year. GHO is an overcollateralized stablecoin issued by Aave that is created by borrowing against collateral deposited on Aave. crvUSD is an overcollateralized stablecoin issued by Curve with a novel stablecoin mechanism characterized by soft liquidations (collateral conversion). Both stablecoins are incubated by highly respected DeFi blue chips to increase their revenue and influence. Since stablecoins have the potential to generate significant revenue and consistent cash flow, their success or failure could be consequential for the issuing protocol.

These stablecoins have not achieved equal measures of...