Curve Finance founder Michael Egorov has proposed deploying the Venus Protocol on the ethereum Mainnet, marking a significant expansion in the decentralized finance (DeFi) sector. This strategic move aims to leverage ethereum‘s substantial liquidity and involves integrating Curve’s native tokens crvUSD and CRV as collateral options, along with a mutually beneficial rewards system.

Expanding DeFi on the ethereum Mainnet: The Venus Protocol Deployment Proposal

ethereum, known for its high liquidity and volume of on-chain transactions, provides an ideal environment for DeFi protocols. Curve, with a Total Value Locked (TVL) of $1.8 billion and its widely used stablecoin crvUSD having a supply of $130 million, plans to extend its influence by supporting pools with Venus assets on the ethereum Mainnet.

Advantages of the Proposed Deployment

The deployment of the Venus Protocol offers several advantages. Firstly, it enhances visibility and brand recognition for Venus on a premier blockchain network like ethereum. Secondly, it expands the adoption and utility of Curve’s crvUSD stablecoin within lending protocols. Lastly, it establishes liquidity pools that integrate the offerings of both Venus and Curve, creating synergies between the two protocols.

Creating Core and Isolated Pools on Venus

Egorov envisions the creation of core and isolated pools on Venus, implementing specific supply and borrow caps to align with risk-managed approaches. Notably, the proposed liquidity mining incentive involves injecting 500,000 CRV tokens to stimulate supply-side participation, aiming to achieve a 10% Annual Percentage Rate (APR) over a span of 120 days.

Positive Response from the Community

The community response to the deployment proposal has been overwhelmingly positive. Leaders and members express strong support for this strategic move, highlighting the community’s eagerness for cross-chain collaboration. While acknowledging ethereum‘s high gas fees, the community values its substantial volume of transactions.

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Decentralized Decision-Making with Curve’s DAO

To distribute rewards, Curve’s DAO utilizes a gauge system that emphasizes decentralized decision-making. The success of the proposed deployment relies on community votes, with historical data showing favorable outcomes for such gauge-based mechanisms.

In conclusion, Michael Egorov’s proposal to deploy the Venus Protocol on the ethereum Mainnet presents an exciting opportunity for both Curve Finance and Venus to expand their reach within the DeFi sector. By leveraging ethereum‘s liquidity and integrating their respective offerings, these protocols aim to create a mutually beneficial ecosystem. The positive response from the community showcases the enthusiasm for cross-chain collaboration, emphasizing the importance of decentralized decision-making through Curve’s DAO.

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By Team