Curve Proposal Suggests Pausing Layer 2 Expansion to Focus on Ethereum Mainnet and crvUSD Development

Key Points

1. Curve generates only about $1,500 daily across 24 Layer 2 chains, averaging roughly $62 per network, compared to $28,000 daily on Ethereum mainnet.

2. The low returns on Layer 2 do not justify the ongoing development and upkeep expenses, with over 90% of Curve’s total value locked (TVL) remaining on Ethereum.

3. The proposal has sparked debate within the DeFi sector, with some analysts noting similar challenges faced by other protocols like Aave.

4. Stakeholders should consider the cost-benefit ratio of Layer 2 expansions versus Ethereum mainnet operations, prioritizing high-yield areas like crvUSD.

5. The proposal highlights the need for resource optimization as the Layer 2 ecosystem matures, ensuring Curve’s continued leadership in decentralized finance.