"crvUSD is overexposed to minor stablecoins, especially TUSD which has a dubious track record and has recently been charged by the SEC with defrauding investors. It may be prudent to consider completely removing crvUSD exposure to TUSD, which has a notably poor track record on peg stability and transparency standards compared to all other PegKeeper stablecoins."
The proposal to remove TUSD comes in light of regulatory issues that have surrounded it, particularly a recent SEC charge against TrueCoin for not fully backing TUSD with U.S. dollars. The implications of this charge necessitate a cautious approach to what collateral assets are deemed stable and reliable.
Additionally, by decreasing the minting capacity of crvUSD with PayPal's PYUSD from $15 million to $5 million, the proposal seeks to diversify its collateral, ensuring the protocol remains resilient against potential failures of any single asset. This move reflects a shift toward more sustainable practices in decentralized finance.
Curve Finance, governed by CRV token holders, stands as a pivotal player in the DeFi landscape, emphasizing the importance of transparent and stable collateral assets in maintaining user trust and protocol integrity.
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