Curve Finance has proposed a brand new protocol known as Yield Foundation that might share income straight with CRV holders, marking a shift from one-off incentives to sustainable earnings.
Abstract
- Curve Finance has put ahead a revenue-sharing protocol to offer CRV holders sustainable earnings past emissions and costs.
- The plan would mint $60M in crvUSD to seed three Bitcoin liquidity swimming pools (WBTC, cbBTC, tBTC), with 35–65% of income distributed to veCRV stakers.
- The DAO vote runs from as much as Sept. 24, with the proposal seen as a serious step to strengthen CRV tokenomics after previous liquidity and governance challenges.
Curve Finance founder Michael Egorov has launched a proposal to offer CRV token holders a extra direct method to earn earnings, launching a system known as Yield Foundation that goals to show the governance token right into a sustainable, yield-bearing asset.
The proposal has been printed on the Curve DAO (CRV) governance discussion board, with voting open till Sept. 24.
A brand new mannequin for CRV rewards
Yield Foundation is designed to distribute clear and constant returns to CRV holders who lock their tokens for veCRV governance rights. Not like previous incentive applications, which relied closely on airdrops and emissions, the protocol channels earnings from Bitcoin-focused liquidity swimming pools straight again to token holders.
To begin, Curve would mint $60 million price of crvUSD, its over-collateralized stablecoin, with proceeds allotted throughout three swimming pools — WBTC, cbBTC, and tBTC — every capped at $10 million. 25% of Yield Foundation tokens could be reserved for the Curve ecosystem, and between 35% and 65% of Yield Foundation’s income could be given to veCRV holders.
By emphasizing Bitcoin (BTC) liquidity and providing yields with out the short-term loss dangers related to automated market makers, the protocol hopes to attract in skilled merchants and establishments.
Context and potential influence on Curve Finance
The proposal comes as Curve continues to switch its tokenomics in mild of the difficulties its founder is dealing with. Egorov was compelled to liquidate a number of extremely leveraged CRV holdings in 2024, which value the protocol $10 million in dangerous debt and over $140 million in losses.
Extra lately, in December, he was liquidated for practically $900,000 price of CRV following a pointy market downturn. Regardless of these setbacks, Curve stays one in every of decentralized finance’s largest stablecoin liquidity hubs.
If Yield Foundation passes, CRV might evolve from a governance and emissions-driven token right into a extra enticing income-generating asset. The mannequin, in line with its proponents, might reduce Curve’s dependency on inflationary rewards whereas strengthening its place as DeFi develops.
