25-9-2025 – Curve’s decentralized autonomous organization has approved a $60 million credit line in crvUSD stablecoin for Yield Basis, a new protocol created by Curve founder Michael Egorov, paving the way for its mainnet debut. The funding will support the launch of Bitcoin-centric liquidity pools on Ethereum, featuring wrapped BTC variants like WBTC, cbBTC, and tBTC.
These pools, built on Yield Basis’ automated market maker design, aim to mitigate impermanent loss and open up DeFi yield strategies for Bitcoin holders. Initial pool sizes are limited to $10 million each, with the broader goal of integrating crvUSD more deeply into Curve’s ecosystem and increasing fee revenue for veCRV token holders, as detailed in the governance proposal. However, the decision sparked debate within the community.
On September 18, pseudonymous commentator Small Cap Scientist criticized the plan on X as overly risky and extractive, citing unassessed economic vulnerabilities, absent TVL-linked caps, potential hack liabilities for Curve, and opaque details on Yield Basis’ investors and tokenomics.
Egorov countered these claims, highlighting six completed audits with a seventh in progress, an Emergency DAO-controlled shutdown mechanism, and assurances that Yield Basis would handle any exploits.
