Curve Finance has changed its fee distribution mechanism, transitioning from the 3cr token to its native stablecoin, crvUSD.

The move aims to improve crvUSD’s utility and integrate the stablecoin into the Curve Finance ecosystem to incentivize users. 

(What users need to know)

According to a press release shared with Cointelegraph, the switch in fee distribution to crvUSD will create “an additional supply sink for the stablecoin.”

The release explains that uncollected fees are mainly responsible for the “supply sink,” potentially increasing the total value locked (TVL).

Michael Egorov, the founder of Curve Finance, spoke with Cointelegraph about how the switch would impact Curve Finance users:

“The transition to crvUSD means that users will now obtain fees in a dollar-denominated stablecoin. This shift simplifies the process significantly, as crvUSD doesn’t have to be converted to anything else to be utilized in Curve Finance products.”