A new proposal on Curve Finance suggests removing TrueUSD as collateral for its stablecoin, crvUSD, due to concerns over TUSD's stability and regulatory issues, reducing its backing limit to zero.
Curve Finance is one of the largest and most used decentralized finance protocols, holdings billions of dollars in user funds. It is autonomously governed by its CRV token holders, who float and vote on proposals to keep the protocol running. Currently, users can mint up to $10 million worth of crvUSD using TUSD through what's known as the 'PegKeeper' liquidity pool. A liquidity pool can be thought of as a collection of tokens stored on a smart contract.
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