crvUSD

Curve Finance built crvUSD around a liquidation engine unlike anything else in DeFi. Instead of seizing collateral at a hard threshold, its LLAMMA mechanism dissolves a borrower's position gradually as prices fall, selling collateral into crvUSD across a band of prices and buying it back if the market recovers, which softens the losses that forced liquidations usually inflict. The token is over-collateralized and minted permissionlessly against assets like ETH; there is no company behind it, only smart contracts governed by veCRV holders. Redemption is onchain, meaning holders repay debt to unlock collateral rather than cashing out with an issuer, and no KYC applies. With a market value in the low hundreds of millions, crvUSD sits well behind the giant fiat coins, but it anchors Curve's lending markets and doubles as a proving ground for novel liquidation design.