Curve DAO approves a crvUSD credit limit of 60 million USD for Yield Basis before the mainnet launch.

Curve DAO has approved a credit limit of 60 million USD in crvUSD for Yield Basis, a new protocol developed by founder Michael Egorov, preparing to launch its mainnet. This capital is used to deploy Bitcoin liquidity pools on Ethereum, including WBTC, cbBTC, and tBTC. The AMM model pools of Yield Basis aim to minimize impermanent loss and expand the DeFi profit strategy for Bitcoin investors, with an initial scale of 10 million USD per pool. The goal is to increase the integration of crvUSD in the Curve ecosystem and enhance fees for veCRV holders.

However, the community has sparked debate. On September 18, commentator Small Cap Scientist argued that the plan is risky, lacks transparency regarding tokenomics, and could burden Curve with the risk of hacking. Egorov responded, affirming that the project has undergone 6 audits, has an emergency shutdown mechanism, and is committed to handling all exploitation risks.