Curve Finance implements crvUSD for the distribution of fees

Curve Finance has made a significant change to its fee distribution mechanism by shifting from the 3cr token to its native stablecoin, crvUSD. The purpose of this move is to enhance the utility of crvUSD and integrate it into the Curve Finance ecosystem in order to incentivize users. The switch to crvUSD as the fee distribution token will create an additional supply sink for the stablecoin, primarily by addressing the issue of uncollected fees. This, in turn, has the potential to increase the total value locked (TVL). Michael Egorov, the founder of Curve Finance, explained that this transition will encourage users to engage more with products and services that utilize crvUSD by incentivizing its use through fee distribution. Users will also be able to deposit crvUSD into the ecosystem using the fees they earn, further promoting community engagement. Curve Finance plans to address any liquidity concerns and risks associated with the transition, including operational risks and asset age. Egorov stated that these risks have been mitigated through the successful passing of all relevant onchain votes during the preparation phase for the change. Overall, this transition aims to improve the overall functionality and integration of crvUSD within the Curve Finance platform.