Curve Llama Lend

The graphic shows the user’s liquidation protection from 13–24 November 2025. The “oracle price” refers to Llamalend’s EMA oracle, not spot price. The green and blue bars represent the liquidation range ($3,200–$2,900) and the user’s shifting collateral composition.

Llamalend v2 is coming to Ethereum. It brings lending closer to Curve liquidity, with isolated markets, flexible asset pairings and support for Curve LP tokens as collateral. The first markets will roll out gradually through Curve governance. news.curve.finance/llamalend-v2-i…

Llamas are cooking

Rates are even lower. Don't hesitate to borrow!

Call me crazy, but this looks like it could be something. Long sfrxUSD; short crvUSD on @llamalend. The carry is 1.8%, so you gain 1.8% x (leverage - 1) atop the base yield. So 10x leverage here would be nearly 20%. It shows max leverage at 50x, which would be 91% net, but please don't do that, it feels like a light breeze would liquidate you.

While the timeline jokes about selling kidneys for $CRV bags 😂 the real ones are using $sfrxUSD on @llamalend to borrow $crvUSD at near-negative rates while still earning real yield on their collateral $FRAX doesn’t make you choose between your organs and alpha It lets you keep both ☝️ and stack anyway this is how smart money actually compounds in DeFi 🔥 $FRAX #DeFi

🟦 Substantia Core Fund (part of @theholding_ ) is now testing BTC-backed borrowing strategies on @LlamaLend. We've used Aave for a long time, but over the past few months we've found ourselves leaning more and more toward the Curve ecosystem. The biggest reason? LlamaLend's liquidation protection. If you haven't looked into it yet, it's worth a read: docs.curve.finance/user/llamalend… Unlike Aave, LlamaLend doesn't rely on a single liquidation threshold. That makes managing leverage feel much smoother, especially when the market gets ugly and liquidations start cascading. It doesn't eliminate risk – but it does make it a lot easier to sleep at night. That said, I wouldn't recommend running your Health Factor below 1.5-2.0. Everyone manages risk differently, so this isn't financial advice. What are we doing with the borrowed liquidity? → Farming on @yieldbasis → Growing cash-flow positions in 🟩 Defitea Yield Fund → Testing stablecoin strategies in ⬛️ Monetra Stable Fund → And a few more ideas we're working on. One rule never changes: Always keep dry powder. If BTC dumps hard, having spare liquidity lets you repay debt quickly, restore your Health Factor, and avoid making emotional decisions under pressure. The only thing to keep in mind is Ethereum gas⛽️ We're keeping position sizes small while testing, but this strategy is naturally a better fit for larger portfolios, where gas isn't as meaningful.

The favorable $crvUSD minting rate is now more stable Made by @CurveFinance

Borrowing against Curve Lp token on a platform “without” hard liquidations - @llamalend V2 on @CurveFinance. curve.finance/llamalend/opti… (DYOR)

@llamalend V2 by @CurveFinance on @Optimism has reached $4 million in TVL. The 🦙🦙🦙 are hard at work. We're just getting started. Stay tuned for more updates.

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Five months ago, the February market selloff and the launch of @yieldbasis revealed areas where the $crvUSD ecosystem could be improved. The peg wasn't breaking, it remained very close to $1 but temporary deviations of several basis points (tens of bps at the largest moves) and increased borrow rate volatility raised valid questions for borrowers and the community. Rather than accepting that behavior as "good enough," the @CurveFinance ecosystem responded. Over the following months, the Curve core team, @LlamaRisk, TokenLogic, ecosystem projects, contributors, and the DAO worked through a series of proposals that strengthened the protocol: • Higher $scrvUSD revenue allocation to reinforce structural demand for crvUSD • Emergency peg-defense capabilities delegated to eDAO • Additional PegKeeper infrastructure and liquidity incentives • Monetary policy updates designed to significantly reduce borrow rate volatility The charts below tell the story. Compared with February, today's $crvUSD peg is noticeably more stable and borrow rates are far more predictable, providing a much better experience for borrowers. Perhaps the most important takeaway is that these improvements were validated during one of the most volatile five-month periods the crypto market has experienced in recent years. Persistent declines in collateral assets created exactly the kind of stress environment needed to test every mechanism designed to protect the system. That stress wasn't wasted - it became a real-world testbed that helped refine the protocol and strengthen its resilience. Today, borrowers, crvUSD holders, and Curve users can have significantly greater confidence that the protocol and its governance process are prepared for similar market conditions in the future. This is what decentralized governance looks like when it works: identify weaknesses early, debate solutions openly, implement improvements, and emerge with a stronger and more resilient protocol.

This is no longer called a "soft liquidation" because, in essence, it is not a liquidation at all. That's why we refer to it as liquidation protection. The collateral conversion process is fundamentally different from what we typically understand as liquidation. Traditionally, liquidation means that the collateral is sold to repay the loan. That process does not occur on @llamalend. As long as the health value remains above zero, the protocol simply changes the composition of the collateral rather than liquidating the position. You can find more details in the updated documentation: docs.curve.finance/user/llamalend…

Is there a better liquidation model than this? I've had Bitcoin as collateral on @llamalend for about a week. I'm borrowing against it, putting that capital to work, and currently earning over 12% on my BTC thanks to the OP incentives. However, I wanted to talk about liquidations. Most DeFi lending protocols follow one of two models: > Full liquidation: hit a price, lose your collateral, pay a penalty. > Partial liquidation: get unwound gradually, paying liquidation fees along the way. @llamalend does it differently. Instead of a single liquidation price, it uses a liquidation band. As the price moves through the band, collateral is sold gradually to reduce debt. If the market recovers before full liquidation, the protocol buys it back automatically. You lose a small spread on the round trip, but your position survives. V2 expands the range of supported collateral: > @CurveFinance LP tokens > PTs from @pendle_fi > More exotic assets in isolated markets It's also reducing reliance on crvUSD. After several stress events over the past year, some users have avoided the protocol because of that dependency. Lowering this friction should make the money market more attractive. The soft liquidation model remains one of the most underrated innovations in DeFi lending. I still haven't seen anything better.

I am not much used to seeing negative borrow rates but there we go

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LlamaLend V2 is live on @Optimism. New markets are open, with OP rewards for eligible positions distributed by @merkl_xyz. Borrow, lend, or loop through isolated markets powered by Curve’s LLAMMA. Only on Curve — the home of stablecoins. curve.finance/llamalend/opti…

Llamalend V2 changes what it means to hold liquidity on Curve. It launched a few days ago. I waited until now to fully understand what V2 was actually bringing to the table. Most people still think this is just a lending upgrade. I don't think that captures what actually changed. V1 introduced range-based liquidation to replace the cliff-edge model most lending protocols still use. Positions liquidate gradually across a range instead of all at once. V2 extends that same protection to all supported assets, not just crvUSD. V1 was also locked to one borrowed asset: crvUSD. If you needed USDC or ETH, @llamalend had nothing for you. V2 removes that restriction. An asset issuer lists on @CurveFinance DEX and builds liquidity there. That LP liquidity now doubles as collateral in a Llamalend V2 market. Holders borrow against it. Borrowing demand drives more DEX volume. Same capital, two jobs simultaneously. What V2 is really doing is pulling the DEX and lending closer together so the same liquidity can serve both. For anyone holding a Curve LP position, that changes what it is actually worth.

Low borrowing rates High LTV ratios Liquidation protection Created by the @CurveFinance team.

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