While the cryptocurrency agenda was busy with the SEC's lawsuit against Binance and Coinbase, the stETH support statement came from the decentralized exchange Curve Finance.
Accordingly, stETH holders will now be able to use their tokens to issue Curve USD (crvUSD), a stablecoin issued by Curve Finance.
Because 100% of CurveDAO community members voted today, crvUSD was allowed to be printed via stETH.
Users will be able to automatically print crvUSD by showing their stETH as collateral.
Users have to pay a borrowing rate of 6%. However, if the value of the collateral falls below the intended $1 fixed value of crvUSD, it will be automatically liquidated.
"CrvUSD could be a very interesting development because we haven't seen a stablecoin issued by a major DEX yet," DeFi developer Daniel Zlotin told Coindesk.