Curve Finance, the largest decentralized exchange in DeFi, has launched a new stablecoin called crvUSD, which aims to provide an alternative to centrally-controlled stablecoins like Tether's USDT and Circle's USDC. The stablecoin works similarly to Maker's DAI but introduces a new way to handle insolvent positions, which should help reduce volatility in the crypto market. The stablecoin uses a mechanism called the Lending-Liquidating AMM Algorithm (LLAMMA), which gradually converts collateral over time instead of liquidating it all at once when a certain level is reached. However, the stablecoin's scalability remains a challenge, and the developers are limiting collateral types and market sizes initially as part of their careful approach.