Yield Basis is a Curve Finance credit-line proposal to mint $60 million crvUSD, allocating 35–65% of value to veCRV stakers and 25% to the Curve ecosystem, while using borrowed liquidity to reduce impermanent loss and expand TVL across BTC-pegged pools.
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35–65% returns to veCRV holders
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Proposal seeks a $60M crvUSD credit line to create WBTC, cbBTC and tBTC pools
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Curve TVL $2.4B; DeFi TVL rose to $163.2B in 2025 (DefiLlama)
Yield Basis Curve proposal: 35–65% to veCRV holders, 25% to ecosystem. Read the breakdown and outcomes for stakers and protocol growth.
The new Yield Basis would allocate 35%-65% of its value to holders of vote-escrowed CRV, while an additional 25% would be reserved for the ecosystem.
What is Yield Basis in Curve Finance?
Yield Basis is a proposed Curve Finance mechanism to mint a $60 million crvUSD credit line that funnels 35–65% of generated value to veCRV stakers and 25% to the Curve ecosystem. It aims to create new income for stakers while limiting impermanent loss through a borrowing-and-sink model.
How does the $60 million crvUSD credit line work?
The proposal, introduced in August by Curve founder Michael Egorov, would establish a $60 million crvUSD credit line for a new vehicle called Yield Basis. Voting began on Wednesday and at the time of reporting, 97% of votes cast are in support.
Yield Basis plans to allocate returns as follows: 35%–65% to holders of vote-escrowed CRV (veCRV) and 25% reserved for the Curve ecosystem to pay for incentives and Curve technology usage. Egorov says the line will enable pools for three BTC-pegged assets: WBTC, cbBTC and tBTC.
Why does Yield Basis aim to reduce impermanent loss?
Yield Basis uses borrowing to create a supply sink while providing liquidity. This dual action is claimed to allow TVL and debt to scale without harming the crvUSD peg. Impermanent loss—when deposited assets’ value diverges from holding assets externally—can be mitigated by the proposed structure, according to the proposal.
How could Yield Basis affect Curve’s TVL and ecosystem?
Curve Finance has a reported total value locked (TVL) of $2.4 billion as of Thursday, per DefiLlama. That figure is down considerably from a 2022 peak near $24.2 billion, but the protocol aims to use Yield Basis to boost on-chain liquidity and incentives.
Across decentralized finance, TVL rose to $163.2 billion on Thursday, up from $115.8 billion on Jan. 1, 2025 — a 40.9% rise in roughly nine months. Rising sector momentum (Aave expansions, Ethena growth) provides context for Curve’s tactical moves.
Frequently Asked Questions
How will veCRV holders receive income from Yield Basis?
veCRV holders would receive an allocation equal to 35–65% of Yield Basis value, distributed to stakers as incentives. The proposal intends these allocations to create recurring income streams tied to protocol revenues.
Will Yield Basis create new liquidity pools on Curve?
Yes. The proposal specifically plans pools for WBTC, cbBTC and tBTC, using the $60M crvUSD facility to seed liquidity and support trading depth.
Key Takeaways
- Allocation model: Yield Basis intends to give 35–65% to veCRV holders and reserve 25% for the Curve ecosystem.
- Credit facility: Proposal requests a $60M crvUSD credit line to bootstrap BTC-pegged pools and expand liquidity.
- DeFi context: Curve’s $2.4B TVL sits within a recovering DeFi market at $163.2B total TVL in 2025, creating tailwinds for growth.
Conclusion
The Yield Basis proposal represents a strategic effort by Curve to monetize protocol liquidity and reward veCRV stakers while tackling impermanent loss through a borrowing-plus-sink design. If approved, the $60M crvUSD credit line could boost BTC-pegged pools and support long-term ecosystem incentives. Monitor Curve DAO voting and official Curve communications for the latest updates.
Note: Sources referenced in reporting include Curve DAO materials, a proposal authored by Michael Egorov, and TVL data reported by DefiLlama. Related: Curve founder repays 93% of $10M bad debt stemming from liquidation.
