Curve Finance has proposed a new protocol called Yield Basis that would share revenue directly with CRV holders, marking a shift from one-off incentives to sustainable income.
Summary
- Curve Finance has put forward a revenue-sharing protocol to give CRV holders sustainable income beyond emissions and fees.
- The plan would mint $60M in crvUSD to seed three Bitcoin liquidity pools (WBTC, cbBTC, tBTC), with 35–65% of revenue distributed to veCRV stakers.
- The DAO vote runs from up to Sept. 24, with the proposal seen as a major step to strengthen CRV tokenomics after past liquidity and governance challenges.
Curve Finance founder Michael Egorov has introduced a proposal to give CRV token holders a more direct way to earn income, launching a system called Yield Basis that aims to turn the governance token into a sustainable, yield-bearing asset.
The proposal has been published on the Curve DAO (CRV) governance forum, with voting open until Sept. 24.
A new model for CRV rewards
Yield Basis is designed to distribute transparent and consistent returns to CRV holders who lock their tokens for veCRV governance rights. Unlike past incentive programs, which relied heavily on airdrops and emissions, the protocol channels income from Bitcoin-focused liquidity pools directly back to token holders.
To start, Curve would mint $60 million worth of crvUSD, its over-collateralized stablecoin, with proceeds allocated across three pools — WBTC, cbBTC, and tBTC — each capped at $10 million. 25% of Yield Basis tokens would be reserved for the Curve ecosystem, and between 35% and 65% of Yield Basis’s revenue would be given to veCRV holders.
By emphasizing Bitcoin (BTC) liquidity and offering yields without the short-term loss risks associated with automated market makers, the protocol hopes to draw in professional traders and institutions.
Context and potential impact on Curve Finance
The proposal comes as Curve continues to modify its tokenomics in light of the difficulties its founder is facing. Egorov was compelled to liquidate several highly leveraged CRV holdings in 2024, which cost the protocol $10 million in bad debt and over $140 million in losses.
More recently, in December, he was liquidated for nearly $900,000 worth of CRV following a sharp market downturn. Despite these setbacks, Curve remains one of decentralized finance’s largest stablecoin liquidity hubs.
If Yield Basis passes, CRV could evolve from a governance and emissions-driven token into a more attractive income-generating asset. The model, according to its proponents, could lessen Curve’s dependency on inflationary rewards while strengthening its position as DeFi develops.
