crvUSD is Curve Finance's native stablecoin, launched on the mainnet with $22 million worth being minted initially. It is an algorithmic stablecoin pegged to the US dollar, designed to function within the decentralized finance (DeFi) ecosystem. Unlike centralized stablecoins, crvUSD is backed by cryptocurrency and employs a novel lending-liquidating automated market-making algorithm (LLAMMA)​​​​​​.

The core logic of crvUSD revolves around its unique LLAMMA mechanism, ensuring capital efficiency and minimizing liquidation risks. This mechanism allows for a gradual conversion of collateral into crvUSD rather than direct asset liquidation. It also features a peg-keeping system to maintain its dollar peg, creating and burning crvUSD tokens as needed, without releasing them into circulation​​.

Curve Finance announced the development of crvUSD in 2022 and launched its smart contract on the Ethereum network on May 3, 2023. The stablecoin's design was influenced by the collapse of Terra's UST stablecoin and is structured similarly to MakerDAO's DAI, functioning as a collateralized debt position stablecoin​​.

Significant milestones for crvUSD include its mainnet launch and the initial minting of $22 million worth of tokens. This launch represents a strategic move by Curve Finance to enter the stablecoin market with a decentralized, algorithmic solution. The total value locked (TVL) in Curve Finance at the time of crvUSD's launch was significant, indicating the protocol's prominent position in the DeFi space​​.

As of the latest information, crvUSD offers a number of benefits within the DeFi ecosystem, such as capital efficiency, risk reduction, a hedge against high volatility, overcollateralization, decentralization, and yield farming opportunities. However, it also faces technological risks, smart contract vulnerabilities, and regulatory uncertainties, which are inherent challenges for new stablecoins in the DeFi sector​​.