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Curve DAO Approves $60M Credit Line for Yield Basis, Boosting Bitcoin DeFi

Thursday Sep 25 2025 10:10

2 min

Table of Contents

0.1 Risk Concerns, Tokenomics, and Liability Debated
0.2 Curve Founder Defends the Proposal

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 clears the way for Yield Basis to introduce Bitcoin-focused liquidity pools designed to mitigate impermanent loss — where assets in a liquidity pool decrease in value compared to simply holding them. The protocol also aims to unlock yield opportunities within Bitcoin (BTC) in the decentralized finance (DeFi) ecosystem. Under the plan, three pools, including WBTC, cbBTC, and tBTC, will be launched on Ethereum utilizing Yield Basis’ automated market maker (AMM) architecture. Curve Finance has stated that these pools will initially be capped at $10 million each. The initiative is geared toward expanding Curve’s ecosystem and more deeply embedding its native stablecoin into DeFi infrastructure. Furthermore, it aims to enhance potential fee flows to holders of veCRV tokens, the vote-escrowed version of CRV, Curve Finance’s governance token. Cointelegraph reached out to Curve for additional details but did not receive a response by the time of publication.

Risk Concerns, Tokenomics, and Liability Debated

Not all members of the Curve DAO were in favor of the proposal. On September 18, Small Cap Scientist, a pseudonymous social media personality, voiced concerns that the plan exposes Curve to substantial risks. In a post on X (formerly Twitter), the user described the plan as “extremely extractive” for the DAO. They cautioned that no independent third party had evaluated the economic risks associated with Yield Basis, and that the $60 million credit line lacked caps tied to crvUSD’s total value locked (TVL). The user also suggested that a security breach on the new protocol could leave Curve responsible for the drained funds. Further concerns were raised regarding transparency surrounding Yield Basis’ seed investors and the incomplete nature of its tokenomics. The community member argued that the protocol should not be granted control over crvUSD without stronger safeguards.

Curve Founder Defends the Proposal

Egorov addressed the concerns, stating that Yield Basis had undergone six audits, with a seventh in progress. He also pointed to the emergency stop mechanism managed by Curve’s Emergency DAO multisig as a key safeguard. He reassured the community that Yield Basis would be accountable for any exploits and noted that its investor allocation breakdown had been added to the governance proposal. “If anything happens, of course, it’d be on Yield Basis to deal with it to the highest degree possible,” Egorov wrote. Egorov added that inviting prominent figures from the ecosystem as investors is a natural step for a project like Yield Basis and emphasized that partner projects are a source of strength for Curve. The move highlights the ongoing efforts to integrate Bitcoin more seamlessly into the DeFi landscape, though it also underscores the importance of thorough risk assessment and community governance in such endeavors. DeFi users should remain diligent in their own research before interacting with new protocols.

Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Written by:

number1

Access Restricted for EU Residents

Curve DAO Approves $60M Credit Line for Yield Basis, Boosting Bitcoin DeFi

Risk Concerns, Tokenomics, and Liability Debated

Curve Founder Defends the Proposal

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