Catenaa, Sunday, September 28, 2025-Curve Finance’s decentralized autonomous organization (DAO) is considering a $60 million proposal to make CRV tokens yield-bearing, potentially creating new income streams for the protocol and its ecosystem.
Voting on the measure began Wednesday, with 97% of votes in support at the time of reporting.
The proposal, introduced by Curve founder Michael Egorov, would establish a $60 million credit line of crvUSD for Yield Basis.
Stakers of CRV would receive veCRV (vote-escrowed CRV) in return, with 35% to 65% of returns flowing back to veCRV holders and 25% reserved for the broader ecosystem. Egorov said the credit line could support pools for WBTC, cbBTC, and tBTC.
Yield Basis is designed to mitigate impermanent loss by borrowing and creating a supply sink simultaneously.
This mechanism allows total value locked (TVL) and protocol debt to scale without negatively affecting the crvUSD peg. Impermanent loss occurs when assets in a liquidity pool underperform compared to holding them outside the pool, often due to rebalancing or market volatility.
Curve Finance, a key player in decentralized finance, had a TVL of $2.4 billion as of Thursday, down from a peak of $24.2 billion in January 2022.
The platform has faced security challenges, including multiple domain name service attacks and fraudulent apps.
The proposal comes amid a broader resurgence in decentralized finance in 2025. Overall DeFi TVL has risen 40.9% since the start of the year, reaching $163.2 billion.
Other DeFi protocols, such as Aave and Ethena, have also expanded operations, signaling renewed investor interest and sector growth.
