The developers of decentralized exchange Curve Finance have released code and official documents for Curve's soon-to-be launched decentralized stablecoin called crvUSD.

Per the whitepaper, authored by Curve Finance founder Michael Egorov, crvUSD will have similar functionality to MakerDAO’s stablecoin called DAI. Matching DAI, it will be overcollateralized with crypto assets.

The whitepaper states that users will be able to mint the stablecoin by depositing excess collateral in the form of a cryptocurrency loan in a reserve, a mechanism called a collateralized debt position (CDP).

The stablecoin will also rely on a novel algorithm dubbed Lending-Liquidating AMM (LLAMMA), which will work to continuously liquidate and sell the deposited collateral to better manage potential collateralization risks.