Curve Founder Proposes $6.6M CRV Grant to Boost Ecosystem Development

Curve Founder Proposes $6.6M CRV Grant for Ecosystem Development

Summary:
Michael Egorov, the founder of Curve Finance, has introduced a proposal for a grant of 17.45 million CRV tokens, worth approximately $6.6 million, aimed at fueling the long-term development of the Curve ecosystem and supporting Swiss Stake AG's initiatives.

Key Takeaways:

Michael Egorov proposes a $6.6 million CRV grant to foster ecosystem growth.
The funding will support Swiss Stake AG’s strategies for 2026, including upgrades to Llamalend.
Swiss Stake AG is still dependent on DAO funding despite having begun generating revenue.

At current market rates, this grant is estimated to be about $6.6 million and is intended for Swiss Stake AG, the primary development entity behind Curve.

Grant Proposal to Strengthen Development and Security

The proposal, shared on the Curve DAO governance forum this past Sunday, follows a similarly structured grant that was approved in late 2024.

Egorov stated that the funding aims to finance research, software development, infrastructure enhancements, and security initiatives for Curve's lending protocol, while also maintaining the contributor base of the company.

“This grant will support software research and development, infrastructure, security, and ecosystem backing, ensuring that the 25-member team at Swiss Stake AG can continue its valuable contributions to Curve,” Egorov explained in his proposal.

According to the proposal, Swiss Stake AG has laid out an ambitious roadmap for 2026. Future projects consist of the launch and expansion of a new version of Curve’s lending product, Llamalend, the creation of an on-chain foreign exchange swap system, and enhancements to the protocol’s user interface.

The document also mentions ongoing efforts in integrations, cross-chain capabilities, and governance tools.

Egorov further emphasized that any intellectual property developed with the grant funds would be made available under an open-source license compatible with Curve’s existing software repositories, aligning with the protocol’s commitment to open development.

If approved, Swiss Stake AG will have the ability to stake a portion of the received CRV to produce additional yield, following the guidelines set in the proposal.

The firm has pledged to publish biannual reports illustrating the utilization of the grant funds, highlighting its sustained pursuit of financial independence.

Despite generating several revenue streams—including Curve Lite deployments on various networks and fees collected through staking veCRV with platforms like Convex, StakeDAO, and Yearn—Egorov noted that these revenues are still not enough to fully sustain operations.

“All such revenues have been directed solely towards the objectives outlined in the grant,” Egorov asserted, emphasizing the need for continued community support at this juncture.

Vitalik Buterin Emphasizes DeFi's Evolution Against Traditional Banks

In related news, Ethereum co-founder Vitalik Buterin remarked that decentralized finance (DeFi) has evolved to a point where on-chain savings are no longer in a testing phase and are starting to rival traditional banking options.

At a Dromos Labs event, Buterin expressed optimism regarding DeFi's advancements in security, usability, and overall maturity. He noted that more users and institutions may soon consider DeFi a viable banking alternative.

Buterin highlighted that the landscape has moved beyond its earlier association with high-risk yield farming and frequent security breaches.

While he acknowledged recent events such as the Balancer hack, he asserted that the difference between the current DeFi ecosystem and the early 2020s is “night and day.” He cited improved smart contract security and introduced the "walkaway test," which ensures that users can always independently recover their funds.