Risk Factors for crvUSD

!Soft liquidation still causes value loss from LLAMMA trading fees during volatile periods
!Smart contract complexity of LLAMMA is novel — less audited than simpler liquidation models
!Limited collateral types compared to DAI (primarily ETH and BTC derivatives)
!Supply has not grown as fast as competitors — lower liquidity outside Curve ecosystem
!Curve suffered a critical re-entrancy hack in July 2023; while crvUSD was not directly affected, protocol trust was impacted
!Oracle risk: crvUSD relies on Chainlink oracles for collateral pricing; oracle manipulation could trigger LLAMMA incorrectly

Peg Stability

crvUSD maintains its $1.00 peg through its Crypto-Collateralized mechanism. Monitor real-time peg deviations using the BTC.PH Depeg Monitor.

+Diversify across multiple stablecoins — never hold all funds in a single issuer
+Monitor reserve attestations and audit reports published by Curve Finance DAO
+Use hardware wallets for self-custody to eliminate exchange counterparty risk
+Set price alerts below $0.995 to react quickly if crvUSD begins to de-peg
+Only deploy into yield strategies you fully understand — complexity multiplies risk