What does liquidation look like when it happens gradually rather than all at once? In H1, 50.2% of Liquidation Protection periods on Curve lasted at least 2 weeks, 28.4% at least a month, and 19.3% at least 90 days; with loans remaining open throughout. A look at LLAMMA in production 🦙

Busy August ethereum:0xf939e0a03fb07f59a73314e73794be0e57ac1b4e minting nearly doubled, the peg stayed within 6.1 bps, and LlamaLend V2 borrowing rose 45%. @ResupplyFi got more $sreUSD capacity, @twinfinance_ launched FX markets in collaboration with @DAMM_Capita, and yRisk was selected as DAO risk provider. Monthly recap ↓

Everyone's talking about Aave v4 right now. TVL is almost at $400M, growing slow but steady but nobody's talking about @llamalend, and that annoys me. Minting against Bitcoin costs 1.57% right now! Deposit yieldbearing ETH like sfrxETH from @fraxfinance instead and the interest the collateral earns gets netted against what you pay to borrow. Utilization on the crvUSD side is still low, so there's room to keep minting without touching the peg. I expect this stablecoin to grow hard over the next few months. It just needs eyes on it. The distribution and listing work already in motion should speed that up.

August was a strong month for Llamalend 🦙 On Ethereum mainnet alone: Collateral TVL +83% Borrowed crvUSD +68% More collateral in. More crvUSD out. Llamalend keeps growing. Built on @CurveFinance.

I went through Curve's latest progress report and there’s a lot to take in. @llamalend V2 is probably the biggest one. Fully audited by ChainSecurity, live on Optimism and deployed on Ethereum in July. V2 now supports LP tokens, PTs and other yield-bearing assets as collateral, isolated lending markets and non-crvUSD borrowing. That opens the door for assets like $scrvUSD, $sfrxUSD and other yield-bearing stables to become much more deeply integrated into Curve’s lending stack. Then there’s FXSwap. Curve is pushing further into FX and other low-volatility markets with dynamic fees, better liquidity placement, faster rebalancing and research into external pricing and propAMM-style designs. The architecture could eventually extend to tokenized equities, commodities, indices and other RWAs. FastBridge also cut $crvUSD withdrawals from L2s to Ethereum from ~7 days to ~15 minutes. CurveRouterV2 is live across multiple chains, with split routing and a new Rust solver. Quote generation is reportedly 10–100x faster, with better execution in the tested $10k–$100k range. And the ecosystem is already putting this infrastructure to work. @yieldbasis generated ~$1.97B in H1 volume through Curve infrastructure, with ~$165.5M average net TVL. Curve is also improving its oracle infrastructure, cross-chain governance, APIs, frontend and risk research. One more thing I found interesting, Swiss Stake plans to propose increasing the DAO’s protocol fee share from 10% to 30%. And outside the main grant, Curve has started implementing StableSwap in Rust for Stellar, potentially bringing Curve beyond EVM. Curve keeps shipping!

How does leverage affect the yield on the underlying asset in @llamalend markets? See how it works using @fraxfinance’s ethereum:0xcacd6fd266af91b8aed52accc382b4e165586e29 stablecoin as an example.