Curve Finance founder Michael Egorov has presented a proposal to deploy the Venus Protocol on the Ethereum mainnet, signaling a strategic expansion in the decentralized finance (DeFi) sector. This proposal, which aims to leverage Ethereum's significant liquidity, also includes the integration of Curve's native tokens crvUSD and CRV as collateral options, coupled with a mutually beneficial reward system.
Known for its high liquidity and volume of on-chain transactions, Ethereum provides a mature environment for DeFi protocols. Curve, which holds a key position with a Total Value Locked (TVL) of $1.8 billion and a widely used stablecoin (crvUSD) with a supply of $130 million, will leverage its influence by supporting pools with Venus -Expand assets on the Ethereum mainnet.
The proposed use is likely to bring several advantages: Improved visibility and brand awareness for Venus on a world-class blockchain network. Additional acceptance and utility for Curve's crvUSD as a stablecoin within lending protocols. The creation of liquidity pools that further integrate Venus and Curve offerings.
Egorov details the potential for creating core and isolated pools on Venus and presents specific supply and credit caps consistent with risk-managed approaches. A notable feature is the proposed liquidity mining incentive, which could see an infusion of 500,000 CRV tokens to encourage supply-side participation, with the aim of achieving an annual percentage rate (APR) of 10% over a 120-day period to reach.
The response within the community forum was overwhelmingly positive, with leaders and members expressing strong support for the effort. The enthusiasm highlights the community's desire for cross-chain collaboration, acknowledging Ethereum's high gas fees but appreciating Ethereum's significant transaction volume.
A measurement system within Curve's DAO is highlighted as a mechanism for distributing rewards, with an emphasis on decentralized decision-making. Successful implementation depends on community votes, with historical precedent showing positive results for such meters.
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