Curve Founder Proposes Venus Protocol Deployment on Ethereum Mainnet

Curve Finance founder Michael Egorov has put forth a proposal to deploy the Venus Protocol on the Ethereum Mainnet, signaling a strategic expansion in the decentralized finance (DeFi) sector. This proposition, aimed at tapping into Ethereum’s substantial liquidity, also includes the integration of Curve’s native tokens crvUSD and CRV as collateral options, paired with a mutually beneficial rewards system.

Ethereum, recognized for its significant liquidity and the volume of on-chain transactions, presents a ripe environment for DeFi protocols. Curve, holding a pivotal position with a Total Value Locked (TVL) of $1.8 billion and a widely used stablecoin (crvUSD) with a supply of $130 million, is set to extend its influence by supporting pools with Venus assets on the Ethereum Mainnet.

The proposed deployment is poised to deliver several advantages: Enhanced visibility and brand recognition for Venus on a premier blockchain network. Additional adoption and utility for Curve’s crvUSD as a stablecoin within lending protocols. The establishment of liquidity pools that further integrate the offerings of both Venus and Curve.

Egorov details the potential for creating core and isolated pools on Venus, presenting specific supply and borrow caps to align with risk-managed approaches. A notable feature is the proposed liquidity mining incentive, which could see an injection of 500,000 CRV tokens to stimulate supply-side participation, with the aspiration of achieving a 10% Annual Percentage Rate (APR) over a span of 120 days.

The response within the community forum has been overwhelmingly positive, with leaders and members expressing strong support for the deployment. The enthusiasm underscores the community's eagerness for cross-chain collaboration, acknowledging Ethereum's high gas fees but valuing its considerable volume of transactions.

A gauge system within Curve’s DAO is highlighted as a mechanism to distribute rewards, emphasizing decentralized decision-making. Successful implementation hinges on community votes, with historical precedence showing favorable outcomes for such gauges.