Voters at Curve DAO to Decide on Proposal for Credit Line Based on Yield Rates
Curve Finance Proposes to Expand Ecosystem with Yield Basis Protocol
Curve Finance, a popular decentralised exchange for stablecoins, has proposed a new initiative to expand its ecosystem. The proposal, currently under voting, is for a credit line of up to 60 million crvUSD for Yield Basis, a new protocol developed by Curve founder Michael Egorov.
If approved, this credit line will be used to power Bitcoin-focused Yield Basis pools. The pools, aimed at providing sustainable returns to liquidity providers, will focus on three assets: WBTC, cbBTC, and tBTC, each with a cap of 10 million. Yield Basis is designed to support volatile asset pools and mitigate impermanent loss, a common issue in decentralised liquidity pools.
The fees for these pools will primarily come from stableswap revenues and YB inflation directed to Curve. If the proposal is approved, Curve could potentially receive between 35% to 65% of what veYB stakers earn from these fees.
The voting process for this proposal opened on September 17 and will run until September 24. So far, the proposal has already garnered 97% approval from 15 million veCRV early votes. However, the percentage of approval could change as more votes are cast.
Separately, 25% of YB tokens are reserved for the Curve ecosystem. This move is intended to foster a closer relationship between Yield Basis and Curve Finance.
The Yield Basis protocol is built on Curve's technology and is designed to expand the Curve Finance ecosystem. By supporting volatile asset pools and addressing impermanent loss, Yield Basis aims to provide a more stable and profitable environment for liquidity providers.
For more information and to cast your vote, visit the Curve Finance forum. The future of the Curve Finance ecosystem could be shaped by this proposal, so your vote matters!
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