The Curve Finance decentralized autonomous organization (DAO) is currently voting on a plan that may create new ways to earn money for the protocol and its community. The idea, announced in August by the founder Michael Egorov, suggests setting up a $60 million credit line of crvUSD for Yield Basis. Voting started on Wednesday, and at the time of this writing, 97% of the votes were in favor of the plan. With Yield Basis, people who own CRV and stake their tokens would get back veCRV (vote-escrowed CRV), which basically provides income for those who stake. Yield Basis is expected to give back between 35% and 65% of its value to veCRV holders, while another 25% will be kept for the ecosystem. Egorov mentioned that the credit line would be sufficient to create pools for three types of assets: WBTC, cbBTC, and tBTC. “To boost incentives for the Curve ecosystem and cover fees for using Curve technology (cryptopools) at its core, Yield Basis will allocate 25% of YB received by Yield Basis liquidity providers to Curve”, Egorov stated in the proposal. The Yield Basis aims to solve the issue of impermanent loss by borrowing and creating a supply sink simultaneously. “Thus, the total value locked (TVL) and debt in Yield Basis can grow as much as needed without harming the crvUSD peg”, Egorov explained.

Impermanent loss happens when the value of digital assets put into a liquidity pool drops more compared to if those assets were held outside the pool. This can occur due to changes in the liquidity pool and other reasons. Curve Finance is involved in decentralized finance and had a total value locked (TVL) of $2.4 billion as of Thursday, according to DefiLlama. However, this TVL has significantly decreased since January 2022, when it was about $24.2 billion. The protocol has faced challenges from attackers, experiencing several domain name service (DNS) attacks and the launch of a fake Curve Finance app. The decentralized finance sector has been growing again in 2025 after a long period of decline from mid-2022 to most of 2023. Overall, the TVL, which indicates the health of DeFi, reached $163.2 billion on Thursday, increasing from $115.8 billion on January 1, 2025. That marks a growth of 40.9% in nearly nine months. Aave, another DeFi protocol with $42.5 billion in TVL, has also made progress in this area. In August, it started operating in the Aptos ecosystem, a blockchain with few competitors for the DeFi leader. Aave is also preparing to launch a new version in the coming months. Ethena has gained traction too, with its synthetic stablecoin drawing interest after the GENIUS Act was approved in the United States. In August 2025, it surpassed $500 million in revenue.