Curve DAO Approves $60M crvUSD Credit Line for Bitcoin Pools

Published: 2025-09-25 11:05:20 |

On 25 September 2025, Curve DAO approved a $60 million crvUSD credit line to boost Bitcoin-focused DeFi pools via Yield Basis. The crvUSD facility funds three Ethereum pools—WBTC, cbBTC and tBTC—each capped at $10 million. Yield Basis uses an automated market maker model to eliminate impermanent loss and generate DeFi yields on BTC. Some DAO members raised concerns over missing third-party risk reviews, lack of TVL caps and incomplete tokenomics. Founder Michael Egorov highlighted six completed audits (with a seventh underway) and an emergency stop via Curve’s multisig, placing exploit liability on Yield Basis. This move deepens crvUSD integration across Curve’s ecosystem and could drive new fee flows for veCRV holders. Traders can expect improved Bitcoin-backed liquidity pools, emerging yield products and broader crvUSD adoption. Monitor upcoming audit results and liquidity metrics to gauge performance.

Neutral

crvUSD is a stablecoin pegged to the US dollar, so its market price remains stable regardless of credit line size. While the $60M crvUSD facility may boost protocol adoption and fee flows for CRV holders, it does not directly influence crvUSD’s peg or trading price. Traders focusing on stablecoins should view this development as neutral for crvUSD’s market value, though it may have indirect effects on CRV liquidity and demand in the longer term.