Curve lending protocol Llamalend v2 has launched on Optimism, receiving a funding of 250,000 tokens ($OP ). Compared to the previous version, the biggest change is the removal of the "crvUSD only" limitation, allowing for more flexible collateral and lending asset combinations.
What’s more interesting is that Curve LP tokens can now be used as collateral: users can lend liquidity while maintaining their market-making exposure, effectively further financializing LP assets. If the risk management team at LlamaRisk can effectively handle the new market audits and lifecycle management, it could enhance capital efficiency within the Curve ecosystem, but it will also amplify collateral volatility and liquidation risks.
#DeFi #Optimism #Curve
What’s more interesting is that Curve LP tokens can now be used as collateral: users can lend liquidity while maintaining their market-making exposure, effectively further financializing LP assets. If the risk management team at LlamaRisk can effectively handle the new market audits and lifecycle management, it could enhance capital efficiency within the Curve ecosystem, but it will also amplify collateral volatility and liquidation risks.
#DeFi #Optimism #Curve