The Curve Finance decentralized autonomous organization (DAO) is currently deliberating a proposal that could generate new revenue opportunities for the protocol and its ecosystem.
The proposal, introduced in August by founder Michael Egorov, aims to establish a $60 million crvUSD credit line for Yield Basis. As of now, voting commenced on Wednesday, with 97% of the votes supporting the proposal.
With Yield Basis, CRV holders who stake their tokens will receive veCRV (vote-escrowed CRV) in exchange, effectively generating income for stakers. Yield Basis is projected to return between 35% and 65% of its value to veCRV holders, while an additional 25% will be allocated for the ecosystem.
Egorov stated that the credit line would be sufficient to create liquidity pools for three assets: WBTC (WBTC), cbBTC (cbBTC), and tBTC (tBTC).
“To enhance incentives for the Curve ecosystem and cover the fees for utilizing Curve technology (cryptopools), Yield Basis allocates 25% of YB to Curve liquidity providers,” Egorov elaborated in the proposal.
Yield Basis is expected to address the issue of impermanent loss by concurrently borrowing and creating a supply sink. “Consequently, TVL and debt in Yield Basis can scale up to any size without negatively impacting the crvUSD peg,” Egorov added.
Impermanent loss can occur when the value of digital assets in a liquidity pool declines more than if they were simply held outside the pool, which may result from liquidity pool rebalancing and other factors.
As of Thursday, Curve Finance holds a $2.4 billion total value locked (TVL), according to DefiLlama. However, this TVL has significantly decreased since its peak of around $24.2 billion in January 2022.
The protocol has faced challenges, including multiple domain name service (DNS) attacks and the emergence of a fraudulent Curve Finance app.
Related: Curve founder repays 93% of $10M bad debt stemming from liquidation
DeFi rises in 2025
The decentralized finance sector has been experiencing growth in 2025 after a notable downturn between mid-2022 and most of 2023.
Total value locked (TVL) across all protocols has risen to $163.2 billion as of Thursday, up from $115.8 billion on January 1, 2025, marking a 40.9% increase in less than nine months.
Aave, another DeFi protocol with a TVL of $42.5 billion, has been making strategic moves. In August, it launched within the Aptos ecosystem, which has fewer competitors compared to the DeFi giant. Aave is also preparing to release a new version in the upcoming months.
Ethena has gained traction as well, with its synthetic stablecoin drawing attention following the passage of the GENIUS Act in the United States. The protocol recorded over $500 million in revenue in August 2025.
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