Curve Monthly Recap October, 2025

Key Highlights of September:

• YieldBasis credit line expanded from 60M to 300M crvUSD
• PegKeeper capacity increased to 300M to support crvUSD stability
• $YB emissions redirected to vote incentives for major crvUSD pools
• 5M crvUSD minted into the sreUSD LlamaLend market via Resupply
• LlamaRisk launched the first crvUSD Optimizer Vault on Arbitrum
• $10M incentives program on XDC Network
• Curve deployed on OKX's X-Layer

All about YieldBasis: Vote Incentives, Airdrop and expanded PegKeeper capacities

On October 7, Curve governance voted to expand YieldBasis’ crvUSD credit line from 60M to 300M. After the proposal passed on October 14, the three $100M market caps filled almost immediately, adding roughly $300M in new TVL to Curve pools. This demand reflects the rapid uptake of YieldBasis as a leveraged liquidity mechanism within the Curve ecosystem.

Following the vote, Michael Egorov, founder of Curve and YieldBasis, published a roadmap outlining additional proposals required to scale the protocol responsibly. The proposals focused on system liquidity and stability parameters, including PegKeeper capacity increases and the introduction of $YB token incentives for Curve governance voting.

Set of proposals for further increasing YB pool capacity and scaling crvUSD

Summary Utilize YB available to Curve DAO fully for bribing for crvUSD stablecoin pools (mostly to crvUSD/USDC and crvUSD/USDT, crvUSD/pyUSD, but also can include crvUSD/frxUSD, crvUSD/USDf etc if those collaborate for partner rewards). This stream is dynamic, up to 360k YB per week. Raise PegKeeper limits from current $108M crvUSD in total to $300M crvUSD in total. Give $1B crvUSD allocation for Yield Basis, giving a capacity of $500M to Yield Basis. (1) and (2) are necessary economic prerequ…

Curve.finance Governancemichwill

$YB Vote Incentives

On October 27, the DAO approved a proposal to redirect $YB emissions to a new permissionless contract that automatically distributes tokens between Votium and Votemarket. These platforms provide incentives to users who vote for certain gauges with their veCRV voting power. More gauge votes increase gauge weight, which results in higher CRV emissions going to the corresponding liquidity pools. The initial targeted pools are:

• crvUSD/USDT
• crvUSD/USDC
• crvUSD/frxUSD

These incentives are designed to run long-term and the mechanism won't change as long as the Curve DAO does not pass another vote to e.g. change the recipient of the YB emissions or change the allocation (e.g. by adding or removing pools).

$YB Airdrop to Curve Governance

On October 15th, YieldBasis airdropped 5M $YB tokens to veCRV holders who voted “YES” on proposals 1206, 1213, and 1222, all of which were important to the development and launch of YieldBasis.

Increased PegKeeper capacity

To support recent growth in YieldBasis activity and maintain stability across crvUSD markets, Curve governance voted to increase PegKeeper capacity from approximately 103M to 300M. Increasing PegKeeper limits allows the system to absorb larger market movements and maintain the crvUSD peg as lending activity scales.

PegKeepers are a core stabilization mechanism in the crvUSD system. They help maintain the peg by automatically supplying or removing crvUSD liquidity from specific pools when price deviates from the target range. More information is available here: Peg Stabilization Reserve (PSR)

Resupply Credit Line

On October 27, Curve governance passed Vote 1237, minting 5M crvUSD into the sreUSD LlamaLend market through the Resupply program. Resupply proposals are used to expand lending capacity in LlamaLend markets when demand increases and risk parameters allow it. This allocation supports borrowing activity, liquidity depth, and overall efficiency within the crvUSD lending ecosystem.

LlamaRisk crvUSD Optimizer Vault on Arbitrum

LlamaRisk launched the first crvUSD Optimizer Vault on IPOR Fusion, introducing automated yield optimization for crvUSD holders on Arbitrum. The vault allocates deposits into StakeDAO v2 strategies with Convex integration and uses IPOR’s autocompounding logic to automatically reinvest rewards.

Risk controls are handled by LlamaRisk, which manages exposure limits and allocation caps. The vault currently distributes capital across WBTC, WETH, and ARB LlamaLend markets. This provides users with a streamlined way to access leveraged crvUSD strategies with risk parameters managed at the protocol level.

October 10: crvUSD Stability and Oracle Performance

On October 10, crypto markets experienced the largest liquidation event in history, with more than $19B liquidated following geopolitical developments related to U.S.–China trade policy.

Despite extreme volatility, crvUSD remained stable, trading between 0.996 and 1.012 (excluding single-block MEV effects), supported by PegKeeper intervention.

During the event, several platforms mis-priced stablecoins due to oracle issues. Curve’s on-chain, liquidity-based oracle system continued to report accurate prices, demonstrating resilience during stress conditions.

This reinforces Curve’s design philosophy: real-trade and real-liquidity oracles provide superior reliability compared to external price feeds.

XDC Rewards Program

On October 29, the XDC Network launched a $10M Surge incentives program, with Curve included as one of the initial participating platforms. During Epoch 001, the program distributed a total of $1.25M in WXDC through Merkl, incentivizing liquidity for the following Curve pools:

Incentives were designed to deepen liquidity across the network and attract additional stablecoin and cross-chain capital. Demand for crvUSD on XDC increased significantly following the program launch, and daily bridge limits were reached as users moved funds to participate in the rewards.

Curve on X-Layer

Curve launched its DEX on X-Layer, OKX’s Layer-2 network built using the Optimism stack. X Layer offers low transaction costs and full EVM compatibility, providing an additional environment for Curve users and liquidity providers to access the protocol. This deployment expands Curve’s multichain presence and availability across rollup ecosystems.

Curve User Observation

A new industry metric released for Q3 2025 showed Curve ranked number one in Average Trading Volume per User with almost $70,000, recording nearly twice the user trading volume of Uniswap.

This highlights that Curve continues to attract high-value users and institutional-scale volume, reinforcing its position as foundational liquidity infrastructure in DeFi.