Curve Activates First LP-Token Llamalend v2 Market With 3M crvUSD Cap

First LP-backed borrowing market goes live

The launch marks the first time an LP token has been enabled as collateral in a Llamalend v2 market. In this setup, holders of the reUSD/sfrxUSD LP token can post that position and mint crvUSD up to the market’s initial cap.

Curve described the design as a way for LP holders to access liquidity while keeping their pool exposure in place. The protocol’s weekly update presented the activation as a governance-driven change now in effect, rather than a proposal still awaiting approval.

Resupply support outlined as a possible add-on

Curve also described how Resupply support could extend the strategy set around the new market, though that route was framed as a separate mechanism. Under that structure, a crvUSD lender would use a yield-bearing lending receipt to mint reUSD, swap the reUSD into crvUSD, and then supply again.

According to the update, that loop would increase lending exposure for crvUSD suppliers and could deepen liquidity available to LP-backed borrowing. The article did not say that this support was already live in the new market, only that it would add an additional path for lenders.

Broader Llamalend activity eased over the week

Curve’s Week 42 figures showed mixed lending activity across Llamalend. Total value locked was reported at $249 million, down 7.7% from the prior week. Borrowed amounts fell 5.9% to $142 million, while collateral dropped 9.7% to $223 million.

At the same time, supplied assets rose 2.2% to $99 million and the number of loans increased by 12 to 1,220. V2 accrued admin fees reached $2.1 thousand, up 3.3% week over week.

Among selected Llamalend supply markets, Curve listed crvUSD supplied against syrupUSDC and sfrxUSD collateral at 4.2% APR, with fxSAVE and sUSDe both at 4.0%. Those figures were presented as selected yields rather than a comprehensive ranking, and Curve noted that actual rates remain variable.

Other governance items remain in progress

Beyond the new LP-token market, Curve highlighted another Llamalend-related proposal that has not yet taken effect. Vote 1505 would raise the sDOLA Llamalend v2 borrow cap from 12.4 million to 25 million crvUSD, but the change is still subject to voting and was scheduled to run through October 21 at 20:56 UTC.

The protocol also said Vote 1500, covering an alUSD/avUSD gauge, has passed but has not been executed. If executed, the Alchemix/Avant pool would become eligible for future CRV incentives, although Curve noted that registration begins with zero gauge weight, meaning approval alone does not start rewards.

Interface updates and the next confirmed steps

Curve said Llamalend market pages now have a revised layout with more market-level data, including participant lists, borrower collateral, debt, health metrics, solvency, days live, maximum leverage and return on equity. On mobile, borrow and supply forms now open in a drawer while market details remain visible, and the market list has added a collateral yield column.

The next confirmed milestones are governance-related. Voting on the proposed higher sDOLA borrow cap continues until October 21, while the current veCRV vote-incentives period referenced by Curve ends on October 22 at 00:00 UTC. For the LP-token market itself, the confirmed live parameters are the reUSD/sfrxUSD collateral type and the initial 3 million crvUSD borrowing cap.