Curve Monthly Recap February, 2026

Key Highlights of February

• Severe market volatility triggered coordinated crvUSD peg defense actions
• scrvUSD revenue share increased to 80% and monetary policy eased
• Emergency DAO authorized with 400K crvUSD treasury buffer
• CRV + YB rewards added to PegKeeper pools
• YieldBasis scaling roadmap published by Michael Egorov
• Stable Summit IV announced in Cannes
• Curve recognized in Aragon’s Ownership Token Framework
• New LlamaLend oracle implementations for fxSAVE and sreUSD markets
• Curve daily active users reached an all-time high (4,900)

Market Volatility and crvUSD Peg Defense

February’s defining event was a period of severe market stress. Sharp BTC and ETH movements triggered rapid deleveraging across DeFi, putting sustained pressure on Curve lending markets and the crvUSD peg.

LlamaRisk coordinated a series of response actions with Swiss Stake and the DAO:

• scrvUSD revenue share increased from 50% to 80% to strengthen crvUSD demand (Vote 1340)
• Monetary policy eased by increasing sigma from 0.007 → 0.019, making crvUSD borrow rates less sensitive to price fluctuations (Vote 1342)
• Emergency DAO authorized to draw 400K crvUSD from the treasury for potential peg defense (Vote 1344)
• Emergency role added to Twocrypto pools, allowing the eDAO to soft-pause YieldBasis pools if necessary (Vote 1343)
• Mint rates were reduced to limit repayment pressure
• Escalation paths were defined for additional intervention if required

All stabilization mechanisms continued to function as designed, demonstrating the resilience of Curve’s layered peg defense system under real market stress.

Scaling crvUSD Alongside YieldBasis

Michael Egorov published a roadmap outlining how crvUSD can scale to tens of billions in supply while supporting the growth of YieldBasis.

YieldBasis — Curve’s BTC liquidity protocol designed to eliminate impermanent loss — already holds the largest BTC liquidity pool on-chain at $220M TVL. As the protocol grows, however, its interaction with crvUSD liquidity becomes increasingly important. Expanding YieldBasis without destabilizing the crvUSD peg requires mechanisms that balance liquidity growth with stablecoin demand.

The proposal outlines several strategies designed to support simultaneous scaling of both systems.

HybridVault

A new vault architecture that allows deposits beyond existing pool caps while requiring crvUSD collateral in approved vaults. This creates additional demand for crvUSD while allowing YieldBasis liquidity to expand.

Users do not need equal BTC-to-crvUSD ratios and can earn yield on both assets simultaneously. The design is reportedly close to deployment.

Volatility Tax

During downward pool imbalances, 10–20% of admin fees would be redirected to incentivize Savings crvUSD deposits, creating a supply sink during periods of peg pressure.

Pool Optimizations

Ongoing research into modifications to Curve pool mechanics that could maintain better pool balance while reducing pressure on the crvUSD peg as liquidity scales.

How to scale Yield Basis and crvUSD at the same time

Summary Here I present some summary of interconnectedness of Yield Basis and crvUSD, and what could be a good pathway to safely scale BOTH to tens of billions USD. Background At $220M TVL Yield Basis already has the biggest BTC liquidity on chain. That is awesome for both Yield Basis and crvUSD adoption, but it also poses challenges for crvUSD! See this graph of crvUSD peg price: This behavior is actually inevitable for any stablecoin, and it did happen to Tether quite some times in the pas…

Yield Basismichwill

CRV + YB Rewards for PegKeeper Pools

Governance approved a proposal to add CRV and YB rewards to all PegKeeper pools (Vote 1353).

PegKeeper play a central role in maintaining crvUSD’s peg. Adding incentives directly aligns liquidity providers with the protocol’s stability mechanisms.

An earlier version of the proposal (Vote 1350) failed to reach quorum, but the resubmission passed with strong support.

DAO on Trial: Code, Humans, and the Limits of Governance

February also saw the launch of DAO on Trial, a new podcast series discussing the realities of on-chain governance.

Participants included:

• Michael Egorov (Curve / YieldBasis)
• Marc Zeller (Aave DAO)
• Gabriel Shapiro (MetaLeX)

Moderated by our chad Gerrit from Curve.

The discussion focused on how decentralized governance interacts with real-world constraints. Key themes included:

• DAOs function more like countries than companies
• Governance conflict can signal healthy decentralization
• Smart contracts enforce rules on-chain, but DAOs still operate within legal and social systems

DAO on Trial: Code, Humans, and the Limits of On-Chain Governance

DAOs have moved beyond theory. Leaders from Curve, Aave, and Metalex discuss where on-chain governance meets legal reality.

Curve Newsmo

Stable Summit IV: Curve as Host

Stable Summit IV announced with Curve as host in Cannes

As the liquidity layer behind many of DeFi’s largest stablecoins, Curve powers the deepest on-chain stablecoin markets. Stable Summit brings together issuers, integrators, and infrastructure providers across the ecosystem.

Aragon Ownership Token Framework

Curve was featured as a launch reference in Aragon’s Ownership Token Framework, a new analytical standard for evaluating token ownership and value accrual.

The framework measures:

• Ownership rights
• Value distribution
• On-chain enforceability of governance decisions

Curve was highlighted for its programmatic governance mechanisms, which route protocol value through transparent on-chain systems.

New LlamaLend Markets and Oracles

Two new oracle configurations were deployed for LlamaLend markets:

• fxSAVE market (Vote 1335): Oracle based on: fxUSD/USDC, USDC/crvUSD, and the aggregated crvUSD price with PPS.
• sreUSD-long market (Vote 1346): Oracle implementation for sreUSD/crvUSD pricing.

Record Daily Active Users

Curve reached a new milestone in early February with 4,900 daily active users, an all-time high.

This represents significant growth compared to the sub-1,000 daily users seen in 2023, reflecting increased demand for Curve’s liquidity and lending infrastructure across multiple chains.

Governance Summary

February was one of the busiest governance months in Curve’s history, with 20 ownership votes covering peg stability, emissions management, new gauges, and oracle deployments.

Peg Defense Cluster (Feb 5-6): Votes 1340–1344 passed within 48 hours, demonstrating the DAO’s ability to respond rapidly to market stress.

Emissions Cleanup: CrossCurve / EYWA pools removed across mainnet and Arbitrum; lvlUSD pools removed

FXSwap Adjustments: A/gamma parameters ramped for the ZCHF/crvUSD pool.

crvUSD Flashloan Cap: Proposal to increase the flashloan cap from 3M → 30M crvUSD (Vote 1355).