A new governance proposal within CurveDAO recommends pausing Curve Finance’s expansion onto Ethereum Layer 2 networks due to unsustainable financial returns. The initiative argues for redirecting resources toward bolstering operations on Ethereum’s mainnet and advancing the crvUSD stablecoin development.
Financial data reveals stark revenue disparities: Curve generates approximately $1,500 daily across all 24 Layer 2 chains combined—averaging roughly $62 per network—while earning $28,000 daily on Ethereum mainnet. With over 90% of Curve’s total value locked (TVL) concentrated on mainnet, the proposal contends that Layer 2 upkeep costs drastically outweigh their marginal contribution.
The debate ignited by this recommendation highlights broader DeFi scaling challenges, with analysts noting similar resource allocation dilemmas faced by protocols like Aave. Stakeholders are urged to prioritize high-impact sectors like crvUSD advancement by evaluating the cost-benefit ratio between Layer 2 expansions and established mainnet activities.
This strategic reassessment underscores the maturing Layer 2 ecosystem’s demand for disciplined resource optimization. Curve aims to maintain its decentralized finance leadership by focusing on economically viable growth vectors amid evolving market dynamics.