CurveDAO Proposal Calls for Rethink on Layer 2 Network Expansion
A CurveDAO community member has submitted a proposal urging the protocol to halt development efforts on Layer 2 networks. The proposal argues that these deployments generate limited revenue and consume significant developer resources that could be better spent elsewhere.
Low Revenue Across 24 Layer 2 Chains
The proposal, submitted on July 31, claims that Curve's presence on 24 different Layer 2 networks only brings in roughly $1,500 in daily revenue, which amounts to approximately $62 per network. Layer 2 networks are designed to help scale Ethereum by processing transactions more efficiently, but Curve's expansion into this sector has not delivered the expected financial results, according to the proposal.
Comparison With Ethereum Pools
By contrast, Curve’s Ethereum-based pools remain far more profitable. The proposal notes that Curve earns around $28,000 each day from these pools — more than 18 times the combined Layer 2 revenue. This difference is reflected in the protocol’s total value locked (TVL), with over 90% of assets staying on Ethereum, based on recent DeFiLlama data.
Proposal Urges Shift in Focus
The author claims that maintaining each Layer 2 deployment requires as much effort as the main Ethereum protocol, but generates much lower returns. The proposal recommends cutting all Layer 2 development to allow the project team to focus on more lucrative and sustainable initiatives such as its native stablecoin, crvUSD.
Community Divided on Multi-Chain Strategy
The suggestion has sparked debate in the Curve community. Some analysts point out that similar DeFi protocols, such as Aave, have struggled to see significant user growth and returns from their multi-chain expansions. According to data from L2Beat, only a small group of Layer 2 networks—such as Polygon, Arbitrum, and Optimism—show substantial user activity.
Curve Team Clarifies Position
In response to the proposal, Curve's official team has clarified that it does not align with their current strategy. A social media post from Curve stated, “To be clear: this post does not come from the team currently working on Curve, and no one in the team agrees with it (so we probably will NOT take that direction).†Development across various networks, for now, is expected to continue as planned.
The debate highlights ongoing challenges for DeFi projects seeking to scale through multiple chains while balancing costs and user engagement. The CurveDAO community is expected to further review and discuss the proposal in the coming days.
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