.@CurveFinance is gearing up for a major liquidity expansion. The latest proposal from Curve DAO isn’t just about adding more liquidity. It’s a strategic move to unlock growth leverage for crvUSD and @yieldbasis (YB). 3 key points: 1/ Increase the weekly bribe budget to 360k YB to attract liquidity into crvUSD pools. 2/ Raise the PegKeeper limit from $108M → $300M crvUSD to absorb larger supply. 3/ Expand YB capacity to $500M and allocate $1B crvUSD. Why this matters: crvUSD is the lifeblood of YB pools. Strong stablecoin liquidity allows Curve to scale leveraged stable vs crypto markets (like WBTC, tBTC, cbBTC) without breaking the peg. This unlocks: - Deeper on-chain liquidity - Stronger crvUSD price stability - Higher capital efficiency for YB pools. Currently, just WBTC + cbBTC + tBTC generate around $1.32M/week in base yield. Scaling TVL to $500M could massively boost system revenue, enough to self-sustain bribe rewards without excessive token emissions. My thoughts: - Curve isn’t just trying to grow crvUSD. It’s engineering a self-reinforcing liquidity loop. Once YB scales, Curve could position itself as a serious contender to Maker or Aave with a unique edge: AMM + stable pool architecture. - If this plan executes smoothly, crvUSD could become a core stablecoin in next-gen DeFi where stable liquidity isn’t just “parked” but actively earns, supports leverage, and enables more efficient arbitrage. Fun fact: This bribe mechanism might drive TVL and APR in crvUSD pools to very attractive levels → potentially pulling in fresh capital.