The Curve wars are back
Terra is endeavoring to slay Maker DAO and its DAI stablecoin by obstructing DAI’s liquidity on Curve Finance. They do this by launching a new pool on Curve which omits the DAI stablecoin. Without liquidity, DAI could potentially lose its peg to the US dollar and drop to zero, which would crash Maker DAO’s MKR token in the process.
- Former MakerDAO CEO calls Terra’s UST stablecoin a Ponzi scheme
- The CEO of Terra took to Twitter to announce plans to starve the Curve Finance 3pool by drawing investors to his Curve 4pool.
- The new pool on Curve Finance omits DAI stablecoin.
- If successful DAI could lose its US dollar peg and in turn, MKR could crash.
The Curve wars can be described as a battle between different DeFi protocols that need to constantly ensure that the pools they use offer the highest CRV rewards.
Curve Finance (CRV) is the most significant DeFi protocol specializing in stablecoin swaps, with $21 billion in total value…