Curve Finance Community Votes On Revolutionary $60 Million Yield Basis Proposal
The Curve Finance decentralized autonomous organization is voting on a $60 million credit line proposal that could transform how CRV token holders earn income. According to Coinspot.io, founder Michael Egorov introduced the Yield Basis initiative in August 2025. The proposal received overwhelming support with 97% of participants backing the plan at the time of publication.
Under the proposal, Curve would mint $60 million worth of crvUSD stablecoin before Yield Basis launches. CoinDesk reports the funds will support three bitcoin-focused pools: WBTC, cbBTC and tBTC. Each pool will be capped at $10 million to ensure balanced risk management.
The mechanism allows CRV holders to stake tokens and receive vote-escrowed CRV (veCRV) in return. Yield Basis will distribute between 35% and 65% of revenue to veCRV holders. An additional 25% of Yield Basis tokens will be reserved for the Curve ecosystem to cover technology usage and incentives.
Why This Matters
This proposal represents a shift from inflationary reward systems to sustainable income generation for token holders. CRV holders who participate in governance by staking will receive direct revenue shares rather than relying on token emissions. The model creates predictable returns while reducing dependency on speculative trading activity.
The initiative addresses impermanent loss issues that typically affect liquidity providers in automated market makers. By implementing a borrowing mechanism that creates supply sinks, the system allows total value locked and debt to scale without affecting crvUSD stability. Cointelegraph notes this could attract professional traders and institutions seeking transparent bitcoin yields.
For existing CRV holders, the proposal offers income generation beyond basic governance rights. The bitcoin-focused pools target institutional demand for cryptocurrency exposure through established wrapper tokens. This approach positions Curve to capture value from growing institutional adoption of digital assets.
Industry Implications
The proposal comes as decentralized finance shows strong recovery momentum throughout 2025. Total value locked across DeFi protocols reached $163.2 billion in September, up from $115.8 billion at the start of 2025. This represents 41% growth over nine months, according to CoinDesk.
Curve Finance currently maintains $2.4 billion in total value locked, though this remains significantly below its January 2022 peak of $24.2 billion. The protocol has faced security challenges including DNS attacks and fraudulent applications, making sustainable revenue models more important for long-term viability.
The broader DeFi sector is experiencing institutional adoption with major protocols expanding operations. Aave maintains $42.5 billion in TVL while expanding into new blockchain ecosystems. Ethena crossed $500 million in revenue during August 2025, demonstrating demand for yield-generating protocols. These developments create competitive pressure for established platforms to offer innovative income mechanisms.
If successful, Curve's revenue-sharing model could influence other major DeFi protocols to adopt similar approaches. The shift from token emissions to direct revenue distribution represents maturation in decentralized finance tokenomics. This evolution addresses long-term sustainability concerns while providing clearer value propositions for token holders.
Further Reading
For those interested in decentralized governance infrastructure and tooling, our comprehensive DAO tooling guide provides detailed analysis of over 100 platforms and tools used in decentralized governance. The guide covers voting mechanisms, treasury management, and community coordination tools essential for modern DeFi protocols.
