Key Takeaways
- CurveDAO member phil_00Llama proposes stopping new L2 deployments.
- Ethereum mainnet pools generate 450x more revenue than all L2s combined.
- Proposal aims to save developer time and refocus efforts on Ethereum.
CurveDAO Member To Implore No More Layer 2 Expansions
A new proposal from CurveDAO member phil_00Llama appears to be aimed at stopping Curve Finance extension onto any additional Ethereum Layer 2 networks. The rationale behind this? Minimal returns and excessive developer workload. This proposal is following closely behind Aave co-founder Marc Zeller who also called for a stop to the expansion in a similar tone thus reflecting the changing mood of the whole DeFi sector.
“L2s just devour the time of talented developers,” phil_00Llama metaphorically referred to, thereby emphasizing that the resources required to keep multiple takeovers on various chains running are hardly sufficient to give the returns expected. The proposal also included some data which indicated that Ethereum mainnet pools on Curve generate 450 times more revenue than all L2 deployments combined.
Curve is all over the place right now, based on this it is running on something like 25 different networks. These are Arbitrum, Polygon, Base, Avalanche, and Gnosis. On the other hand, the total value locked (TVL) on the Ethereum mainnet is nearly $2.3 billion and hence more dominant; while the average for L2 deployment (Base and Arbitrum included) is just $50 million when compared.
The Proposal Brings Unwanted Cost vs Return Issues To The Forefront
In the proposal by phil_00Llama he explains that the expansions to L2 are the cause of the continuous $1,500 revenue per day across all the networks. This is despite their excessive developer maintenance both owing to the fast pace of the chains and also to the fact that they are sometimes short-lived. Consequently, he proposes that Curve’s energy be directed towards building up products such as scrv
“What currently runs can keep running,” he wrote. “But let’s delete all L2-linked items from Curve devs’ to-do lists and redirect efforts to more meaningful initiatives.”
While the proposal has seen limited discussion so far, it reflects a growing sentiment in the DeFi community to consolidate rather than continuously expand. CurveDAO remains one of the most active governance platforms in crypto, so future responses may shape the direction of this debate.
Summary
CurveDAO is reassessing the value of its multichain strategy. With mounting developer costs and minimal revenue from L2s, members are beginning to question whether sticking closer to Ethereum’s mainnet might be the more strategic move.
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