Curve Finance Proposes Liquidity Pools with sDAI and stUSDT

Curve Finance Proposes Liquidity Pools with sDAI and stUSDT

Recently, the Curve Finance community proposed creating liquidity pools pegged with two yield-bearing tokens, sDAI and stUSDT.

Proposal Overview

The proposal has passed the discussion and voting phases. The two tokens in question are:

• stUSDT: A staking yield-bearing version issued by Tron.
• sDAI: A yield-bearing version from MakerDAO's Real World Assets (RWA) activities.

Previously, on the evening of 20/09, a proposal started to be voted on to "test updated versions of Vyper as a foundation to integrate pools for Yield-Bearing Tokens (Rebased)."

Technical Integration

If approved, this proposal will provide the technical infrastructure to integrate the mentioned tokens. Notably, sDAI is garnering community attention with a 5% yield from bond accumulation activities.

Conversely, stUSDT has raised significant transparency concerns within the community. Tether has issued statements clarifying that this product is entirely developed unilaterally by Tron and is not associated with them.

Implementation and Community Reaction

By the evening of 12/10, Curve Finance officially launched two price-pegged pools with tokens related to "Real World Assets," namely stUSDT and STBT.

The inclusion of the controversial stUSDT token in the price-pegged pool system quickly received numerous negative comments.

At the time of writing, the price-pegged pool with sDAI token has also been launched. However, the current incentive yield is not very impressive, leading to low liquidity attraction (approximately 22,000 USD).

Conclusion

The proposal's acceptance and the subsequent implementation of liquidity pools with sDAI and stUSDT highlight Curve Finance's efforts to integrate yield-bearing tokens into their ecosystem. Despite the mixed reactions, particularly concerning stUSDT, this development signifies a notable step in the evolving DeFi landscape.