crvUSD

Gradual liquidation instead of a one-shot sale of collateral is the defining trait of the Curve exchange's stablecoin. As price approaches the danger zone, a position is converted smoothly from collateral into the stablecoin and back rather than closed at once, which softens the cascading sell-offs typical of collateralised dollars. The mechanism is called LLAMMA and became the protocol's most discussed component. Collateral is limited to liquid crypto assets, and the peg is held by the borrow rate and protocol market operations.

Because collateral is sold off gradually, a position can come out of a drawdown having lost part of its backing even without a formal liquidation.