Curve DAO Finalizes Risk Provider Role, Appoints yRisk

After nearly two months of community deliberation, the Curve decentralized autonomous organization (DAO) has passed a pivotal governance proposal. The vote officially designates the yRisk team as the primary risk provider for the crvUSD stablecoin and the Llamalend lending protocol, tasked with overseeing financial risks across these markets.

Overwhelming Vote and Grant Structure

Proposal 1492 garnered strong community backing, passing with approximately 621 million veCRV votes in favor and a mere 5.33 votes against. The proposal was executed just 87 minutes after the voting period closed, highlighting the community's decisive stance.

yRisk will operate under a one-year, revocable grant agreement with the following compensation:

  • Stablecoin Allocation: 125,000 frxUSD (to be held in sfrxUSD).
  • Token Incentives: 568,000 CRV tokens.

The total grant value is notably lower than yRisk's initial request for a $250,000 annual budget, reflecting the DAO's negotiation on costs and perceived value.

Team Profile and Capacity Considerations

yRisk is a compact team of two developers. They identified themselves as lead developers of the Resupply protocol and core contributors to both Yearn Finance and Resupply. Resupply is a stablecoin and lending protocol built on crvUSD and CurveLend.

Third-party auditor Swiss Stake, which reviewed the proposal, acknowledged yRisk's deep experience within the Curve ecosystem. However, the review also raised concerns about the team's capacity, noting that a two-person team might be stretched thin monitoring multiple Llamalend markets effectively.

Transition from Previous Provider

This appointment marks a formal handover of the risk provider responsibilities. The previous holder of the role, LlamaRisk, announced an early termination of its partnership with Curve in late May and ceased all related work by June 30th. LlamaRisk subsequently returned roughly 270,000 unvested crvUSD to the Curve treasury.

This departure prompted Curve founder Michael Egorov to initiate a call for new risk provider proposals in early July, with yRisk emerging as the selected candidate.