Finance platform proposes redistributing earnings straight to CRV token bearers through a vote
In the ever-evolving world of DeFi (Decentralised Finance), Curve Finance has made a significant move with the introduction of a new model called Yield Basis. This model, proposed by Fred Krueger, promises to offer Curve Finance holders the opportunity to achieve sustainable income.
At its core, Yield Basis emphasises Bitcoin liquidity within the Curve Finance protocol. This focus is expected to attract professional traders and institutions, offering yields without the risks of short-term losses.
A key aspect of Yield Basis is the distribution of revenue. Between 35% and 65% of Yield Basis's revenue will be given to veCRV (veCurvely) holders, providing a direct financial incentive for those who hold and participate in Curve Finance's governance.
Valour, a digital asset investment platform, has also jumped on board, launching Litecoin and Curve DAO ETPs (Exchange-Traded Products). This move further solidifies the integration of Curve Finance within the wider cryptocurrency ecosystem.
Interestingly, 25% of Yield Basis tokens are reserved for the Curve ecosystem. This allocation ensures a strong connection between the model and the platform it serves, potentially lessening Curve's dependency on inflationary rewards and strengthening its position in DeFi.
If Yield Basis passes, CRV (Curve's native token) could evolve into a more attractive income-generating asset. This development could further boost the adoption and usage of Curve Finance within the DeFi space.
In another development, Curve Finance has launched three pools for its over-collateralised stablecoin, crvUSD. These pools, capped at $10 million each, are for WBTC (Wrapped Bitcoin), cbBTC (Convex-boosted Bitcoin), and tBTC (Keep Network's Bitcoin).
These moves by Curve Finance and the introduction of Yield Basis are exciting developments in the DeFi space. As these initiatives unfold, it will be interesting to see how they impact the broader cryptocurrency market and the role of Curve Finance within it.
