The stablecoin protocol, Reserve, has made an investment of $20 million in Convex, Curve, and Stake DAO.
According to the team from Reserve, the funding might make it possible to implement additional services like collateralized loans and wallet products.
A June 20 statement said that Reserve is putting $20 million into the governance tokens of yield farming apps. These apps include: Curve (CRV), Convex (CVX), and Stake DAO (SDT). Reserve intends to make its stablecoins, known as RTokens, more tradable through the investment. It will also give Reserve more votes in the control systems of these apps.
Reserve is a protocol for stablecoins that lets people make their own coins. They can chose any asset they want to back their coins. In addition, it has made a number of stablecoins. Some of them are: Electronic USD (eUSD), High-Yield USD (hyUSD), Reserve (RSV), Reserve Dollar (RSD), and ETH+.
Reserve Team Working Towards New Features
Before the announcement, Reserve was already the seventh biggest holder of Convex tokens, after Mochi, Redacted, JPGd, Badger, Clever, and FRAX. The protocol got these tokens by using Convex in an extensive way to make yield for its users.
The Reserve team said that this new $20 million funding could lead to new features for RTokens, such as “collateralized loans, wallet products, tokenizing real world assets, and more transparent fintech systems.”
The biggest market cap coin for the protocol is called eUSD. This coin is backed by dollar derivatives from Compound and Aave. It is worth more than $20 million on the market and trades for about $500 million per day. The team says that the Android and iOS payment app RPay, which is often used in Latin America for remittances, shopping, and payroll, has helped eUSD do more than $5.7 billion in total volume.
High-Yield USD is the coin with the second highest market cap on the protocol. Convex and Flex Finance provide a basket of dollar derivatives that back this coin.
Because the price of CRV reached its lowest point in one year on June 15, holders of CRV tokens may view the announcement of the $20 million investment as good news. The new low was partially related to the issue that surrounded Aave loans that Curve’s founder is allegedly responsible for taking out.
