Curve Finance's new proposal considers removing TUSD as collateral

BlockBeats news, on September 27, according to Financefeeds, a new proposal from Curve Finance proposed to remove TrueUSD (TUSD) from the list of collateral tokens for the platform's stablecoin Curve USD (crvUSD). The proposal also suggested reducing the crvUSD minting capacity using PayPal's stablecoin PYUSD from $15 million to $5 million.

The proposal was submitted by "WormholeOracle" and believes that TUSD's history of regulatory challenges and concerns about transparency make it a risky asset to support crvUSD. They also pointed out that TUSD is involved in legal issues, including the U.S. Securities and Exchange Commission (SEC) accusations of defrauding investors. WormholeOracle said: "crvUSD is overly exposed to small stablecoins, especially TUSD, which has a questionable history." The proposal recommends completely eliminating crvUSD's exposure to TUSD and emphasizes the need to diversify crvUSD's collateral base to ensure stability.