Will Curve Finance's new moves secure crvUSD's peg?



Title: Curve Finance Plans to Increase Interest Rates to Stabilize crvUSD

Curve Finance Considering Interest Rate Increase

In an attempt to maintain stability for its crvUSD stablecoin, Curve Finance is contemplating a proposal to raise interest rates. The stablecoin previously lost its USD parity due to a hack but has since experienced fluctuations in value.

Interest Rate Hike Proposal

The proposal involves raising interest rate multipliers for staked Ether, ethereum, and bitcoin. The goal is to address the current situation where market rates are higher and borrowers lend more, thus causing crvUSD to fall below $1.

CRV’s Price Performance

Despite market gains, CRV’s price has remained stagnant over the past month, oscillating between $1 and $0.98. at press time, CRV is trading at $0.99, showing a bearish trend in its price movement. The Moving Average Convergence/Divergence indicator also points to a severe bearish sentiment.

Key Momentum Indicators

While the outlook for CRV appears bearish, key momentum indicators indicate persistent token accumulation. The Relative Strength Index and the Money Flow Index are both above 50 at press time, showing potential for a price recovery.

Conclusion

Curve Finance’s proposed interest rate increase is an attempt to stabilize the crvUSD stablecoin’s value, which has experienced price fluctuations following a hacking incident. However, CRV’s price performance remains bearish in the market, despite indications of potential recovery.



### News source: eng.ambcrypto.com

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