Curve’s Decentralized Autonomous Organization (DAO) has approved a proposal to offer Regie Base, a new protocol developed by Curve Founder Michael Egorov, with a $60 million credit line from CRVUSD Stablecoin prior to the launch of MainNet.
The vote cleared a yield-based method to introduce a Bitcoin-centric liquidity pool compared to simple retention when liquidity pool assets fell in value. The protocol is also intended to unlock the Bitcoin (BTC) yield opportunities for Decentralized Finance (DEFI).
The plan will launch three pools, including WBTC, CBBTC and TBTC, in Ethereum using an automated market maker (AMM) architecture. According to Curve Finance, the pool will initially be $10 million.
The initiative aims to expand the ecosystem of curves and embed native stubcoins deep into the defi infrastructure. It also aims to increase the potential fee flow for VECRV token holders and holders of the governance tokens of Curve Finance, a voting version of CRV.
Cointelegraph contacted us to curve for more information, but we had not received responses from the publishing.
Risk control, talknomics, and liability concerns
Not all Curve DAO members welcomed the proposal. On September 18, a small scientist with pseudonymous social media figures said the plan put the curve at a significant risk.
In an X post, users said the plan was “very extractive” for DAO. He warned that no third parties have assessed the economic risks of yields, and that $60 million does not have a cap tied to the total value of CRVUSD (TVL). He also said hacking of the new protocol could leave the curve to take responsibility for the drained funds.
Members of the community also raised concerns about yield-based seed investors and transparency regarding incomplete toconemics, saying the protocol should not be granted control of CRVUSD without strong guardrails.
Related: Exchange ether supply is the first low hit in nine years in “Wall Street Grow Up.”
Curve Founder adheres to proposals
Egorov pushed back concerns. In response to the X-Post, Egorov said that the harvest standards had undergone six audits and the seventh monitoring was carried out. He also pointed to the emergency stop mechanism managed as guardrails by Curve’s emergency DAO Multisig.
He said the community was responsible for the exploits and that a breakdown of investor allocations was added to the governance proposal.
“If something happens, of course, it will be based on yields to deal with the highest possible degree,” Egorov wrote.
Egorov added that it is natural to invite famous people from the ecosystem as investors based on a project-like yield. He said the partner project is the strength of the curve.
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