Curve Finance DAO Voting on $60 Million crvUSD Yield Basis Proposal

Curve Finance DAO Voting on $60 Million Yield Basis Proposal

The Curve Finance decentralized autonomous organization (DAO) is voting on a proposal that could open up new income streams for the protocol and its ecosystem. The proposal, introduced in August by founder Michael Egorov, would establish a $60 million credit line of crvUSD for Yield Basis. Voting began on Wednesday, with 97% of votes cast in support of the proposal at this writing.

Details of the Yield Basis Proposal

Under the Yield Basis, holders of CRV who stake their tokens would receive veCRV (vote-escrowed CRV) in return, essentially creating income for stakers. Yield Basis would return between 35% and 65% of its value to holders of veCRV, while an additional 25% would be reserved for the ecosystem. Egorov said the credit line would be enough to create pools for three assets: WBTC (WBTC), cbBTC (cbBTC) and tBTC (tBTC). "In order to get more incentives for Curve ecosystem as well as to pay a fee for having Curve technology (cryptopools) powering its core, Yield Basis makes an allocation equal to 25% of YB which Yield Basis liquidity providers are getting to Curve," Egorov wrote in the proposal.

Addressing Impermanent Loss

The Yield Basis is said to tackle the problem of impermanent loss by borrowing and making a supply sink at the same time. “Therefore, TVL and debt in Yield Basis can scale up to any size without affecting crvUSD peg negatively,” Egorov continues. Impermanent loss occurs when the value of digital assets deposited in a liquidity pool falls more than if the assets were held outside the liquidity pool. It can happen due to liquidity pool rebalancing and other factors.

Curve Finance's Performance in DeFi

Curve Finance is a player in decentralized finance and has a $2.4 billion total value locked (TVL) as of Thursday, according to DefiLlama. However, that TVL has dropped considerably since January 2022, when it peaked at around $24.2 billion. The protocol has struggled against attackers, suffering multiple domain name service (DNS) attacks and the appearance of a fake Curve Finance app.

The Rise of DeFi in 2025

As a sector of crypto, decentralized finance has been rising in 2025 after a significant lull period between mid-2022 and most of 2023. Across all protocols, TVL, a measure of DeFi health, has risen to $163.2 billion on Thursday, up from $115.8 billion on Jan. 1, 2025. That’s a rise of 40.9% in almost nine months. Aave, a DeFi protocol with $42.5 billion in TVL, has been making moves in the space. In August, it went live in the Aptos ecosystem, a blockchain with few competitors to the DeFi giant. Aave is also working on a new version set to go live in the coming months. Ethena has also experienced momentum, with its synthetic stablecoin receiving attention after the GENIUS Act was passed in the United States. It crossed $500 million in revenue in August 2025.

Understanding veCRV and Its Role

The veCRV (vote-escrowed CRV) is a crucial element within the Curve Finance ecosystem. By staking CRV tokens to receive veCRV, users gain governance rights, allowing them to participate in voting on proposals like the Yield Basis initiative. The amount of veCRV a user holds directly impacts their voting power, incentivizing long-term commitment to the platform. Furthermore, as the Yield Basis proposal suggests, veCRV holders can potentially earn a portion of the revenue generated, creating a direct link between platform governance and financial rewards. This mechanism is designed to foster a more engaged and aligned community within Curve Finance.