Grant Period: December 2024 to February 2025
1. Executive Summary
This report offers a detailed account of the progress, achievements, and financial allocation for the second quarter following the receipt of the grant. This quarter, we focused on the development of software features for expanding technological capabilities, refining user experience, and strengthening the overall functionality of the Curve ecosystem.
We have developed the code for critical upgrades, enhanced ecosystem compatibility, and optimized core processes to improve efficiency. Significant progress has been achieved in areas such as scalability, governance, and accessibility, laying the foundation for sustained growth and innovation within the Curve network.
We extend our gratitude to the community for its unwavering support and confidence, which has been instrumental in driving these initiatives forward. Our team remains committed to pushing the boundaries of decentralized finance by continuously delivering impactful enhancements to the Curve ecosystem.
2. Accomplishments and Progress
The second quarter has seen incremental advancements across various initiatives within the Curve ecosystem. Below are the key updates:
Smart Contract Developments
Cryptoswap improvements are in the pipeline for auditing and include the following features:
- new withdrawal method: allowing users to select the amount of LP to burn and how much to withdraw one coin with a constraint on the other, as well as allowing to define the balance of assets they withdraw from the LP, which is valuable for arbitrageurs and leveragers using looping.
- crypto donations: allows users to donate funds to cryptoswap pools, to be used only to increase liquidity density.
- as well as UX bug fixes and improvements
Crosschain standardization for everything Curve related
Creation of a blockhash oracle software as a public good accessible on all chains where layer zero is available. This enables the following features (all available with storage proof):
- scrvUSD rate oracles on L2s (Audit sponsored by Optimism and Cyfrin)
- Read the Ethereum state from any L2
- Unified governance solution based on storage proof on ALL chains (enabling boosts on all chains)
It is important to note that there are no vendor lock-ins with this feature.
Ongoing research on Llamalend
Llamalend
Code for New Markets deployed for crvUSD minting markets
The following collateral options were added as collateral for crvUSD mint markets: cbBTC, lbtc, weeth.
The new markets support the following recently added features:
One-click Leverage via Aggregators:
Markets now support integration with DEX aggregators, enabling users to access broader DeFi liquidity for leverage. This reduces slippage when entering large positions and allows for leveraging down. Odos Protocolâs Router has been integrated as the first aggregator, with the option to support others in the future with additional zap contracts.
AMM Efficiency Improvements:
Adjustments to AMM dynamic fees have resulted in efficiency improvements compared to current markets.
Loan Management Delegation:
Users can delegate loan management to approved accounts or smart contracts, enabling automated position adjustmentsâsuch as closing or reducing loans before entering the liquidation protection (soft-liquidation) range.
LP tokens as collateral:
The new implementation allows liquidity pool (LP) tokens to be used as collateral. While minting crvUSD with LP tokens remains a to-be-debated topic due to additional risks, Llamalend markets share the same implementation as these new crvUSD markets, making it a viable future possibility.
User Customizable Risk Parameters:
Preparation of enhancements that allow users to set extra âhealthâ or manually set their liquidation protection (soft-liquidation) range, independent of borrow amounts and collateral value. This feature is now live at the smart contract level for new markets and will be integrated into the UI once the full Curve Lending overhaul is complete.
Sonic deployment
Llamalend was deployed on Sonic alongside Curve-Lite, enabling Sonic users to benefit from the power of LLAMMA.
Integrations
Interest Rates Derivatives Protocol
scrvUSD saw integration with exciting Interest Rates Derivatives Protocol: Spectra, Napier & Pendle. This allows scrvUSD holders to get more yield out of their scrvUSD by trading YT and PT tokens. Spectra is an interesting case, as it is built on top of Curve and committed to use Curve technology and is proudly âPowered by Curveâ.
Resupply
Resupply integrates with Curve and crvUSD to enhance capital efficiency and stablecoin utility within its yield optimization strategy. By deploying idle collateral into Curve poolsâespecially those involving crvUSDâResupply taps into deep on-chain liquidity and real yield opportunities. This allows the protocol to earn trading fees and CRV incentives, while also benefiting from Curveâs PegKeeper mechanism to maintain stablecoin price stability. Additionally, crvUSD positions can be used as productive collateral within Resupply, enabling users to mint, deploy, and loop yield strategies more effectively across integrated money markets.
Communications Improvements
Efforts have been maintained to improve communication with the Curve community and beyond, with numerous publications mentioning the Curve and ecosystem articles published.
A pipeline has been built to automate the publication of the weekly âyields of the weekâ publication. The collaboration with the other persons that have received grants from the curve grant council for managing Curveâs resources and news has also been strengthened.
Increased Curve Community presence at main web3 events.
Party Action People were allocated a grant from Curveâs grant council to support spreading the Curve gospel. This grant makes Curve DAO the main sponsor for all the Stable Summit events of 2025 as well as support the Swiss Stake team to build meaningful connections during these events. Team members are taking the stage, demonstrating expertise and know-how.
Stable summit is a leading conference series launched in 2022, which sees the best of the industry and asset issuers converge either right before or after the following events: ETH Denver, ETH CC, DevConnect, Devcon. Donât hesitate to come and meet them if you attend the next event!
3. Financial Overview
3.1 Fund Allocation Overview â Current Quarter and Cumulative
The overview below outlines the allocation of grant funds for the second 3-month period, as well as on a cumulative basis:
| Category | Amount Spent â Current Quarter | Amount Spent â Cumulative | % of Total Funds Allocated |
|---|---|---|---|
| Security Audits | 331 | 744 | 28% |
| Software Development | 296 | 588 | 22% |
| Community & Tech Support | 355 | 618 | 23% |
| Front End Development | 214 | 384 | 14% |
| Research & Analytics | 81 | 175 | 6% |
| Infrastructure | 118 | 189 | 7% |
| Total | 1,395 | 2,698 | 100% |
All numbers expressed in CHF in â000
Financial allocation remains flexible, allowing for dynamic adjustments based on project needs. While some categories have seen expected expenditures, others have been adjusted due to shifting priorities.
3.2 Focus and alignment
Swiss Stake AG remains committed to prudent financial management, ensuring that available resources are used effectively. However, progress toward financial self-sustainability has been slower than initially anticipated.
While some exploratory efforts have been made toward alternative revenue models, no significant breakthroughs have been achieved yet. The team continues to evaluate strategies to optimize fund utilization and generate sustainable financial growth within the Curve ecosystem.
4. Sustainability
Swiss Stake AG remains focused on strengthening financial sustainability and reducing reliance on external grant funding. This quarter, incremental steps were taken to optimize cost allocation and explore potential revenue streams that align with the ecosystemâs growth.
Some progress has been made in leveraging existing Curve infrastructure and refining incentive structures. The team continues to assess long-term strategies to ensure sustainable development while maintaining operational flexibility.
While full self-sufficiency remains a long-term goal, we are progressing steadily. Further refinements and strategic planning efforts will continue in the coming quarters to build a resilient financial foundation for the ecosystem.
5. Conclusion
Swiss Stake AG is pleased with the strides achieved during this reporting period and remains dedicated to advancing the Curve ecosystem through continuous innovation and strategic planning.
Looking ahead, our primary objectives include achieving further technical advancements, strengthening ecosystem engagement, and enhancing financial sustainability. The communityâs continued support and collaboration remain invaluable, and we are eager to contribute to even greater progress in the coming quarter.
We sincerely thank our community for its trust and enthusiasm, and we look forward to sharing continued progress in the next report, as we continue to expand and refine the Curve ecosystem.