{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "what-is-crvusd",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/what-is-crvusd/",
  "collection": "stablecoins",
  "title": "What is crvUSD? Curve’s lending stablecoin",
  "description": "Understand how Curve’s crvUSD is minted against collateral and how LLAMMA’s gradual conversions differ from a guarantee against liquidation losses.",
  "aliases": [
    "what is crvusd",
    "What is crvUSD Curve’s lending stablecoin"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:26:58.461Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "crvUSD is Curve’s collateral-backed stablecoin. Users can mint it through supported borrowing markets, while LLAMMA manages collateral through price bands that can progressively exchange collateral into crvUSD as prices fall. This soft-liquidation design does not eliminate losses, debt or the possibility of hard liquidation.",
    "claimId": "what-is-crvusd-quick-answer",
    "sourceIds": [
      "x425-sc-crvusd",
      "x425-sc-llamma"
    ]
  },
  "keyFacts": [
    {
      "label": "Issuance",
      "value": "Supported collateral markets allow users to borrow newly minted crvUSD.",
      "sourceIds": [
        "x425-sc-crvusd"
      ],
      "id": "issuance",
      "claimId": "what-is-crvusd-fact-issuance"
    },
    {
      "label": "Mechanism",
      "value": "LLAMMA can convert collateral to crvUSD and back as prices move through bands.",
      "sourceIds": [
        "x425-sc-llamma"
      ],
      "id": "mechanism",
      "claimId": "what-is-crvusd-fact-mechanism"
    },
    {
      "label": "Risk",
      "value": "Soft liquidation can generate losses and does not rule out hard liquidation.",
      "sourceIds": [
        "x425-sc-llamma"
      ],
      "id": "risk",
      "claimId": "what-is-crvusd-fact-risk"
    }
  ],
  "prerequisites": [
    "crypto-backed-stablecoins",
    "defi-liquidations"
  ],
  "sections": [
    {
      "id": "borrow",
      "heading": "A minted balance comes with a debt position",
      "sourceIds": [
        "x425-sc-crvusd"
      ],
      "paragraphs": [
        "Minting crvUSD through a collateral market is borrowing, not discovering free tokens. The position has collateral, outstanding debt, interest rules and a health condition. Buying crvUSD from someone else does not give the buyer that borrower’s position.",
        "The documentation describes multiple controller and AMM versions. Check the deployed market rather than assuming every crvUSD or LlamaLend market has identical parameters."
      ]
    },
    {
      "id": "bands",
      "heading": "Gradual conversion changes the collateral inventory",
      "sourceIds": [
        "x425-sc-llamma"
      ],
      "paragraphs": [
        "LLAMMA places collateral across price bands. As the price enters the liquidation range, trading can shift the position from collateral toward the borrowed stablecoin; a subsequent price recovery can shift it back.",
        "For a conceptual example, a position that started entirely in ETH may later contain both ETH and crvUSD. Returning to the original market price does not guarantee restoration of the exact original ETH amount, because trading and liquidation losses can occur along the path."
      ]
    },
    {
      "id": "separate",
      "heading": "Soft liquidation is not protection from every loss",
      "sourceIds": [
        "x425-sc-llamma",
        "x425-sc-crvusd"
      ],
      "paragraphs": [
        "Hard liquidation remains possible when the position meets the relevant unhealthy condition. Borrowers must distinguish the stablecoin’s peg mechanism from their own collateral exposure and debt obligation.",
        "Oracle behavior, contract implementation, liquidity and governance-controlled market choices remain relevant dependencies. This is a mechanism explanation based on documentation retrieved on 2 October 2026, not an assurance about a specific live position."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does holding crvUSD mean I am personally being liquidated?",
      "answer": "Merely holding the stablecoin differs from owning a borrowing position. Liquidation mechanics apply to positions with collateral and debt, while token holders face the stablecoin’s broader backing, peg and operational risks.",
      "sourceIds": [
        "x425-sc-crvusd",
        "x425-sc-llamma"
      ]
    }
  ],
  "claims": [
    {
      "id": "what-is-crvusd-quick-answer",
      "articleSlug": "what-is-crvusd",
      "statement": "crvUSD is Curve’s collateral-backed stablecoin. Users can mint it through supported borrowing markets, while LLAMMA manages collateral through price bands that can progressively exchange collateral into crvUSD as prices fall. This soft-liquidation design does not eliminate losses, debt or the possibility of hard liquidation.",
      "sourceIds": [
        "source-9ca27911011b6741",
        "source-16057ef12e5bd2c1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9ca27911011b6741",
          "locator": "Infrastructure components; Controller and AMM versions"
        },
        {
          "sourceId": "source-16057ef12e5bd2c1",
          "locator": "Soft liquidation; bands; losses"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Curve soft/de-liquidation and hard liquidation read in context. No lossless-recovery claim; holder versus debt-position distinction correct."
      }
    },
    {
      "id": "what-is-crvusd-fact-issuance",
      "articleSlug": "what-is-crvusd",
      "statement": "Issuance: Supported collateral markets allow users to borrow newly minted crvUSD.",
      "sourceIds": [
        "source-9ca27911011b6741"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9ca27911011b6741",
          "locator": "Infrastructure components; Controller and AMM versions"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Curve soft/de-liquidation and hard liquidation read in context. No lossless-recovery claim; holder versus debt-position distinction correct."
      }
    },
    {
      "id": "what-is-crvusd-fact-mechanism",
      "articleSlug": "what-is-crvusd",
      "statement": "Mechanism: LLAMMA can convert collateral to crvUSD and back as prices move through bands.",
      "sourceIds": [
        "source-16057ef12e5bd2c1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-16057ef12e5bd2c1",
          "locator": "Soft liquidation; bands; losses"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Curve soft/de-liquidation and hard liquidation read in context. No lossless-recovery claim; holder versus debt-position distinction correct."
      }
    },
    {
      "id": "what-is-crvusd-fact-risk",
      "articleSlug": "what-is-crvusd",
      "statement": "Risk: Soft liquidation can generate losses and does not rule out hard liquidation.",
      "sourceIds": [
        "source-16057ef12e5bd2c1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-16057ef12e5bd2c1",
          "locator": "Soft liquidation; bands; losses"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Curve soft/de-liquidation and hard liquidation read in context. No lossless-recovery claim; holder versus debt-position distinction correct."
      }
    }
  ],
  "sources": [
    {
      "id": "x425-sc-crvusd",
      "label": "Curve stablecoin overview",
      "publisher": "Curve documentation",
      "url": "https://docs.curve.finance/developer/crvusd/overview/",
      "locator": "Infrastructure components; Controller and AMM versions",
      "note": "Collateralized crvUSD minting and distinct controller, oracle and AMM roles.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:08.810Z",
      "contentSha256": "e69a4c0c058fdea0cad9bc2400e86384394d6df1a862eba9a2c90512a95b0704",
      "recordId": "source-9ca27911011b6741"
    },
    {
      "id": "x425-sc-llamma",
      "label": "LLAMMA explained",
      "publisher": "Curve documentation",
      "url": "https://docs.curve.finance/developer/crvusd/llamma-explainer/",
      "locator": "Soft liquidation; bands; losses",
      "note": "Progressive collateral conversion in LLAMMA and losses during soft-liquidation trading.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:52:47.468Z",
      "contentSha256": "9f8616f879193f43f2e6d55ccba44329c799163cc7ed718e1fd9031f71825038",
      "recordId": "source-16057ef12e5bd2c1"
    }
  ],
  "related": {
    "articles": [
      "stablecoin-depegging",
      "collateral-and-health-factors",
      "what-is-gho",
      "what-is-fdusd"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “What is crvUSD? Curve’s lending stablecoin.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-crvusd/"
}