Curve DAO supports $60M in crvUSD credit for new protocol

A DAO member flagged risks and transparency issues, but Curve founder Michael Egorov said audits and safeguards address them.

Curve’s decentralized autonomous organization (DAO) has approved a proposal to provide Yield Basis, a new protocol developed by Curve founder Michael Egorov, with a $60 million credit line in crvUSD stablecoin ahead of its mainnet launch. 

The vote cleared the way for Yield Basis to introduce Bitcoin-focused liquidity pools designed to eliminate impermanent loss — when assets in a liquidity pool dip in value compared to simply holding them. The protocol also aims to unlock yield opportunities in Bitcoin (BTC) in decentralized finance (DeFi).

Under the plan, three pools, including WBTC, cbBTC and tBTC, will be launched on Ethereum using Yield Basis’ automated market maker (AMM) architecture. Curve Finance said the pools will initially be capped at $10 million. 

Read more