# What is crvUSD? Curve’s lending stablecoin 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. Evidence: [Curve stablecoin overview](https://docs.curve.finance/developer/crvusd/overview/); [LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/) Canonical: https://degreesofsatoshi.com/encyclopedia/what-is-crvusd/ Published: 2026-10-02 Substantively modified: 2026-10-02 Independently verified by an automated reviewer: 2026-10-02T19:26:58.461Z Data current through: 2026-10-02 AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied. ## Key facts - **Issuance:** Supported collateral markets allow users to borrow newly minted crvUSD. ([Curve stablecoin overview](https://docs.curve.finance/developer/crvusd/overview/)) - **Mechanism:** LLAMMA can convert collateral to crvUSD and back as prices move through bands. ([LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/)) - **Risk:** Soft liquidation can generate losses and does not rule out hard liquidation. ([LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/)) ## A minted balance comes with a debt position 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. Evidence: [Curve stablecoin overview](https://docs.curve.finance/developer/crvusd/overview/) ## Gradual conversion changes the collateral inventory 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. Evidence: [LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/) ## Soft liquidation is not protection from every loss 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. Evidence: [LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/); [Curve stablecoin overview](https://docs.curve.finance/developer/crvusd/overview/) ## Questions ### Does holding crvUSD mean I am personally being liquidated? 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. Evidence: [Curve stablecoin overview](https://docs.curve.finance/developer/crvusd/overview/); [LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/) ## Claims and scope ### what-is-crvusd-quick-answer 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. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### what-is-crvusd-fact-issuance Issuance: Supported collateral markets allow users to borrow newly minted crvUSD. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### what-is-crvusd-fact-mechanism Mechanism: LLAMMA can convert collateral to crvUSD and back as prices move through bands. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### what-is-crvusd-fact-risk Risk: Soft liquidation can generate losses and does not rule out hard liquidation. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ## Sources - [Curve stablecoin overview](https://docs.curve.finance/developer/crvusd/overview/) — Curve documentation. Collateralized crvUSD minting and distinct controller, oracle and AMM roles. Locator: Infrastructure components; Controller and AMM versions. Retrieved: 2026-10-02T18:51:08.810Z. - [LLAMMA explained](https://docs.curve.finance/developer/crvusd/llamma-explainer/) — Curve documentation. Progressive collateral conversion in LLAMMA and losses during soft-liquidation trading. Locator: Soft liquidation; bands; losses. Retrieved: 2026-10-02T18:52:47.468Z. ## Revision history - 2026-10-02: First publication after primary-source research and separate automated verification. ## Cite this entry 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/