📅 August 1 | Global DeFi Community
The DAO behind one of the longest-running DeFi protocols faces a crossroads.
An influential CurveDAO member has just launched a controversial proposal: restricting new implementations on other Layer 2 unless they meet strict alignment standards.
The reason? To avoid dangerous ecosystem fragmentation and protect governance consistency.
🧠 Curb growth… to protect the ecosystem?
The proposal was published this week on Curve's official governance forum. Its author, identified as C2tP, warns that the protocol is engaging in an unstrategic expansion into multiple Layer 2 (L2) networks without sufficient impact analysis.
Curve currently operates on:
Ethereum
Arbitrum
Optimism
Base
zkSync
Polygon zkEVM
...with more on the way.
The problem, according to the proposal:
“These implementations fragment liquidity, dilute governance, and expose the protocol to unnecessary risks on networks with poorly aligned policies or user bases.”
The document calls for any new implementation to:
Undergo a technical and political risk analysis.
Be evaluated for alignment with Curve's vision.
Require direct DAO approval via on-chain voting.
It also suggests halting automated deployments by the technical team and external partners, something that has been occurring rapidly over the past year.
The proposal has not yet entered the voting phase, but it has already generated intense debate among key members, especially those involved in driving the protocol's multichain presence.
Topic opinion:
This proposal is awkward but necessary. In the fervor of multichain expansion, many protocols have forgotten their core: consistency, strong governance, and resource efficiency.
Curve, as a DeFi veteran, has a responsibility to avoid becoming a scattered protocol that loses traction by trying to be everywhere.
Sometimes saying "no more" is the smartest thing a DAO can do.
Especially if it wants to avoid liquidity so fragmented that it becomes irrelevant everywhere.
💬 Is it right for Curve to slow its expansion?
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