Curve Finance founder Michael Egorov has unveiled a proposal aimed at giving CRV token holders a more direct way to earn income. The plan, called Yield Basis, seeks to transform the governance token into a sustainable, yield-generating asset.
The proposal is now live on the Curve DAO governance forum, with voting open until Sept. 24.
A new approach to CRV rewards
Yield Basis is designed to deliver consistent and transparent returns to CRV holders who lock their tokens for veCRV governance rights. Unlike previous incentive programs that relied heavily on airdrops and emissions, this model channels income from Bitcoin-focused liquidity pools directly back to token holders.
Under the plan, Curve would mint $60 million worth of crvUSD, its over-collateralized stablecoin. The proceeds would be allocated across three pools — WBTC, cbBTC, and tBTC — each capped at $10 million. Additionally, 25% of Yield Basis tokens would be reserved for the Curve ecosystem, while 35–65% of Yield Basis revenue would go directly to veCRV holders.
By focusing on Bitcoin liquidity and offering yields without the short-term loss risks typical of automated market makers, the protocol aims to attract professional traders and institutional investors.
Context and potential impact
The proposal comes as Curve continues to adjust its tokenomics amid challenges faced by Egorov. In 2024, he was forced to liquidate several highly leveraged CRV holdings, resulting in $10 million in bad debt and over $140 million in losses. In December, he faced another liquidation of nearly $900,000 worth of CRV following a market downturn.
Despite these setbacks, Curve remains one of DeFi’s largest stablecoin liquidity hubs.
If Yield Basis is approved, CRV could shift from being primarily governance- and emissions-driven to a more income-focused token. Supporters argue that the model could reduce Curve’s reliance on inflationary rewards while strengthening its position in the evolving DeFi landscape.
