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# CrvUSD Adds a New PegKeeper
- URL: https://news.curve.finance/crvusd-adds-usdm-pegkeeper/
- Published: 2024-10-29T12:31:10.000Z
- Updated: 2025-05-15T06:35:12.000Z
- Author: Michael Egorov
- Tags: #saint

The Curve DAO has approved and implemented a major governance proposal to integrate Mountain Protocol's [USDM](https://curve.finance/#/ethereum/pools?search=usdm) stablecoin into the crvUSD [PegKeeper](https://resources.curve.fi/crvusd/loan-concepts/#pegkeeper) system, establishing a 10 million crvUSD debt ceiling. [The proposal](https://curvemonitor.com/dao/proposal/ownership/869) was executed on the [23rd of October](https://etherscan.io/tx/0xe77f16f321416944ce4282207802c36e1b001f0b909a0c55827ba254b7faf0d3). This marks a new expansion of Curve's crvUSD ecosystem, where PegKeepers play a crucial role in maintaining crvUSD's dollar peg.

## About [USDM](https://curve.finance/#/ethereum/pools?search=usdm)

USDM is a regulated, permissionless, and yield-bearing stablecoin, fully backed by US Treasuries. USDM follows a proven security model used by all the well-known stablecoins, sharing yield with holders, currently at a 5% APY. USDM is issued by [Mountain Protocol](https://mountainprotocol.com/usdm) is a prudentially-regulated financial entity, compliant with the regulations of the Bermuda Monetary Authority.

Launched in September 2023, it currently maintains a total supply of approximately 59.3M with 42.6M on Ethereum, and a further 16.8M on L2s. USDM differentiates itself by ensuring robust overcollateralization with US Treasuries, allowing token holders to benefit from a secure, stable, and compliant digital asset.

## Integration Details

The governance proposal implements three key changes:

- **Adds the USDM Pegkeeper to the PegKeeper Regulator**, allowing it to function
- **Sets a 10M crvUSD debt ceiling for USDM**, so this crvUSD can be swapped to USDM in the event crvUSD depegs upwards
- **Incorporates USDM PegKeeper into crvUSD monetary policies**, using USDM as a USD price oracle moving forward.

This positions USDM alongside other major stablecoins in the crvUSD PegKeeper system:

- USDT (25M debt ceiling)
- USDC (25M debt ceiling)
- pyUSD (5M debt ceiling, [reduced from 15M on the 5th of October](https://curvemonitor.com/dao/proposal/ownership/854))

As part of this restructuring, the [DAO voted](https://curvemonitor.com/dao/proposal/ownership/854) to offboard TUSD from the PegKeeper system, reducing it's debt to 0 due to regulatory and solvency concerns.

## Attractive Yields for LPs

The [USDM/crvUSD pool](https://curve.finance/#/ethereum/pools/factory-stable-ng-154/deposit) currently offers compelling returns for liquidity providers with the recent introduction of a Reward Gauge and the commitment by Mountain Protocol team to promote the pool:

- **Base yield: approx. 1.9%** (primarily from USDM's current 5% yield from rebasing)
- **CRV rewards: approx. 5% to 14%** (depending on boost)
- Total liquidity: $1M

This integration strengthens crvUSD's peg stability by enhancing the PegKeeper system, reflecting Curve DAO's agility in adapting to evolving stablecoin risks and opportunities. The addition of USDM brings Treasury-backed yield generation to Curve's stablecoin infrastructure, backed by Mountain Protocol's commitment to promote liquidity growth.