Michael Egorov, the founder of Curve Finance, has proposed to implement the Venus Protocol on the Ethereum Mainnet, indicating a calculated move towards a strategic growth in the decentralised finance (DeFi) space. This proposal, which aims to take advantage of Ethereum’s significant liquidity, also incorporates the use of native Curve tokens, crvUSD and CRV, as options for collateral along with a rewards system that benefits both parties.
Ethereum provides a favourable environment for DeFi protocols because of its high level of liquidity and volume of on-chain transactions.
Supporting pools with Venus assets on the Ethereum Mainnet, Curve, with a Total Value Locked (TVL) of $1.8 billion and a popular stablecoin (crvUSD) with a supply of $130 million, is poised to increase its power.
The suggested deployment is anticipated to provide a number of benefits: Venus will have increased exposure and recognition on a top blockchain network. Increased usage and acceptance of Curve’s crvUSD stablecoin in lending protocols. the creation of liquidity pools that combine Venus and Curve’s offerings even more.
Egorov describes Venus’s potential for developing isolated and core pools and presents supply and borrow caps that correspond with risk-managed strategies. One noteworthy aspect is the proposed liquidity mining incentive, which aims to achieve a 10% Annual Percentage Rate (APR) over 120 days by injecting 500,000 CRV tokens to encourage supply-side participation.
Leaders and members of the community forum have responded to the deployment with great support, which has been overwhelming positive. While acknowledging Ethereum’s high petrol fees, the community values its significant volume of transactions, and this enthusiasm highlights the community’s eagerness for cross-chain collaboration.
Curve’s DAO highlights a Gauge system as a means of allocating rewards and highlighting decentralised decision-making. Votes from the community are necessary for successful implementation, and previous experience with similar gauges has produced positive results.