Curve DAO backs $60M credit line for Bitcoin Pools
Curve's governance approved a $60 million crvUSD credit line for Yield Basis on September 24. The new protocol, created by Curve founder Michael Egorov, will use the funds to launch Bitcoin liquidity pools on Ethereum.
The credit facility will support three Bitcoin pools: WBTC, cbBTC, and tBTC. Each pool has a $10 million deposit cap. The protocol will draw only $2 million in crvUSD per pool initially, allowing arbitrage routes to adjust before full deployment.
Yield Basis operates as an automated market maker with roughly 2x leverage. Users can deposit Bitcoin wrappers while the protocol borrows the stablecoin portion. The design aims to reduce impermanent loss through compounding leverage.
The credit line works similarly to existing crvUSD facilities like PegKeepers. Funds are drawn only when corresponding Bitcoin deposits arrive. Borrowed amounts are paired in pools rather than sold, with borrowing fees directed to rebalance Curve cryptopools.
Curve retains control through the designated minter and oversight via the Curve Emergency DAO multisig. The DAO can reclaim funds if needed.
Yield Basis will allocate 20% of its YB token emissions to the Curve ecosystem. VeCRV holders will direct how these tokens are used, including vote incentives for crvUSD pools. Community members suggested raising Curve's share of YB emissions in future proposals.
"The $60M acts as a credit line that's only drawn when BTC deposits arrive," a contributor explained in the governance thread. Egorov confirmed his participation after the vote reached quorum.
The original proposal appeared on Curve's governance forum on August 18, 2025. It detailed Yield Basis' approach to offsetting impermanent loss and described fee flows across Curve's various pools. Forum updates referenced multiple independent audits and a live security competition before the vote.
The approval allows Yield Basis to begin its Ethereum deployment and operate under the approved credit terms. The protocol can now proceed with launching its initial Bitcoin-focused pools using the allocated crvUSD credit line.
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