A new CurveDAO proposal suggests ending deployments to new Ethereum layer 2s, citing poor returns and maintenance costs.
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Posted August 4, 2025 at 10:33 am EST.
CurveDAO member phil_00Llama has proposed that Curve Finance should halt all future deployments to new Ethereum layer 2 networks.
The reasoning is based primarily on the low economic returns and significant developer time required to maintain these deployments.
According to phil_00Llama, L2 deployments collectively generate only about $1,500 per day in revenue – just a fraction compared to the main Ethereum network, where Curve earns around $28,000 daily.
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The proposal recommends halting new L2 deployments, suggesting that developers should instead focus on enhancing Ethereum-centric products like expanding the use of Curve’s interest-bearing stablecoin scrvUSD.
The proposed move is part of a larger trend among DeFi protocols. As noted by DeFi analyst Ignas, protocols like Aave have also reconsidered the profitability and strategic value of operating on numerous L2s, including Linea and zkSync.
“We reached an L2 saturation point,” said Ignas.
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