The founder of Curve Finance, Michael Egorov, announced a proposal in the Curve Dao Government Forum that would grant the holders of the decentralized exchange a more direct way of obtaining income.
The protocol, called the performance base, aims to distribute sustainable yields to CRV holders that support tokens to participate in governance votes, receiving VECRV tokens in return. The plan goes beyond the occasional aerdrops that have defined Token’s economy of the platform to date.
According to the proposal, $ 60 million from CRVUSD Stablecoin de Curve will be coined before the performance is initiated. The tokens sale funds will admit three pools centered in Bitcoin; WBTC, CBBTC and TBTC, each limited to $ 10 million.
The performance base will return between 35% and 65% of its value to VECRV holders, while reserving 25% of the performance base tokens for the curve ecosystem. The vote on the proposal extends from September 17 to September 24.
The protocol is designed to attract institutional and professional merchants by offering transparent and sustainable bitcoin yields while avoiding common impermanent loss problems in automated market manufacturers.
The loss of impermanent occurs when the value of the assets blocked in a liquidity group changes compared to the maintenance of the assets directly, leaving the liquidity suppliers with less profits (or greater losses) Once they retire.
The new protocol comes in a context of financial turbulence for Egorov himself. The founder of the curve has suffered several high -profile liquidations in 2024 tied to leverage CRV purchases.
In June, more than $ 140 million were settled in CRV positions after Egorov borrowed a lot against Token to support its price. That episode left the curve with $ 10 million in uncollectible debt.
More recently, in December, Egorov was settled for 918,830 CRV (Around $ 882,000) After Token fell 12% in a single day. He later said in X that the position was linked to UWU Hack funds and represented the reimbursement of a promise from the Founder of Uwu.
CRV increased around 1% in the last 24 hours.
