Curve Monthly Recap November, 2025

Key Highlights of November

• Liquidation protection deep-dive and case study
• Emergency DAO multisig authority expanded
• New stUSDS pools deployed by Sky
• YieldBasis pools enabled leverage for crvUSD markets
• Swiss Stake quarterly grant report
• crvUSD trading volume reached new highs
• Curve launched on Monad
• Ethereum Protocol Advocacy Alliance

Liquidation Protection

LlamaLend’s liquidation protection redefines how liquidations work by replacing sudden wipeouts with a controlled, step-by-step process. Instead of being liquidated at a fixed price, positions enter a protection range where LLAMMA gradually converts collateral to crvUSD (and vice versa) as prices go down increases, helping stabilize the loan. This gives borrowers time to react, repay, or adjust their positions — often surviving market dips that would instantly liquidate them elsewhere.

The system is driven by health, not LTV, and conversions inside the range can partially reverse when prices recover. Losses accumulate only during prolonged volatility, and full liquidation occurs solely when health reaches zero — not when price crosses a specific threshold.

A detailed case study from November showed a large ETH-backed position staying open for an entire week of violent market swings, even falling below its liquidation range without being liquidated. The user had multiple opportunities to repay debt, restored the loan’s health, and ultimately closed the position voluntarily. Despite extreme turbulence, the position avoided instant liquidation penalties and preserved most of its collateral value.

This example highlights how liquidation protection provides borrowers with resilience, control, and time by turning extreme volatility into a manageable process rather than a sudden loss. Read more here:

Emergency DAO Multisig

With crvUSD now diversifying its backing through YieldBasis and Resupply, and with the potential for further scale, strong checks and balances are increasingly important to ensure protocol safety.

A new proposal expands the Emergency DAO’s authority, giving the multisig and the DAO shared control over several critical risk parameters to ensure fast, safe responses to market stress.

• Mint Factory:
  • Reduce, but never increase, debt ceilings for any component relying on crvUSD minting (including YB, FlashMinter, etc.).
• Controller (Llamalend markets):
  • Adjust AMM fees.
  • Modify monetary policy.
  • Update the liquidity-mining callback.
  • Manage borrowing discounts (without triggering liquidation for any users).
• Vaults:
  • Set deposit limits.

New stUSDS Pools on Curve - Actually Two

After the Spark.fi PYUSD Reserve pool ($103M TVL) and the Spark.fi USDT Reserve pool ($50M TVL) were established on Curve and proved themselves to be fundamental pillars for USDS onchain liquidity, a new sUSDS/stUSDS pool was deployed by Sky alongside 500,000 USDS in incentives for the next three months. Unfortunately, the pool was deployed with incorrect settings. stUSDS was treated as a regular ERC-20 instead of an ERC-4626 vault token. This caused the pool to become heavily imbalanced; not dangerous at all for LPs, but not functional as a trading pool, effectively acting as a supply sink for stUSDS.

Shortly after, the Sky team deployed a corrected sUSDS/stUSDS pool, again with 500k USDS in incentives. This new version uses the proper pool parameters and functions normally for both swaps and liquidity provision.

YieldBasis Pools for BTC Market Leverage

The original Bitcoin crvUSD markets, which previously lacked access to deep and liquid routes for leverage, now integrate YieldBasis pools. This enables users to create leveraged BTC positions with minimal slippage and deeper liquidity routing.

Quarterly Swiss Stake Grant Report

Swiss Stake, the main company behind the development of Curve, released its quarterly update covering progress across LlamaLend V2, FXSwap, and Curve’s cross-chain infrastructure. LlamaLend received its largest upgrade yet, adding broader asset support like non-crvUSD lending markets, stronger risk controls, and simpler integrations, while FXSwap moved from internal testing into early pilot use after simulations and audits.

The team also expanded backend and frontend capabilities, improved multi-chain monitoring, and supported new deployments on TAC, Etherlink, and Hyperliquid. Business development, educational efforts, and global event participation continued to drive adoption. Swiss Stake expects remaining grant funds to cover several more months of operations, with a follow-up proposal planned for early 2026.

Quarterly Progress Report: June 2025 - August 2025

Grant Period: June 2025 - August 2025 1. Executive Summary Covering the period from June to August 2025, the fourth quarter of the Curve Ecosystem Grant marked steady progress across core initiatives. Over the past few months, Swiss Stake AG focused on advancing several core protocol developments, strengthening cross-chain capabilities, and supporting Curve’s broader ecosystem growth. Major technical progress was achieved with the continued development of Llamalend V2 and FXSwap. Llamalend V2…

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crvUSD Trading Volume Surges

On November 17th, crvUSD recorded the third-highest daily stablecoin volume — trailing only USDT and USDC. Much of this activity stems from YieldBasis mechanics, which generate trading flows as BTC price moves.

Curve Live on Monad

End of October, Curve launched on Monad, bringing deep stablecoin liquidity to a high-performance EVM-compatible Layer 1 optimized for efficient execution and low-latency interactions.

Curve joins the Ethereum Advocacy Alliance

Curve joined the newly formed Ethereum Protocol Advocacy Alliance (EPAA), a coalition of leading Ethereum teams working together to protect and advance the Ethereum protocol. The alliance focuses on public-policy education, defending open smart-contract execution, and ensuring Ethereum remains a neutral, permissionless global settlement layer.