Curve Finance, a leading decentralized finance protocol, is considering a proposal to cease Layer 2 (L2) development in favor of more profitable operations on Ethereum.
Reasons Behind the Proposal to Stop L2 Development
The proposal came from community member phil_00Llama, who explained that L2 development consumes time. He added that talented developers could benefit Curve Finance more if they focus exclusively on Ethereum.
Profit from L2 Compared to Ethereum
According to the forum post, L2 development is not profitable for the protocol, generating only $1,500 a day across all L2 chains. 'All 24 L2s, on which Curve is currently deployed, result in a total of roughly $1,500 of daily revenue, or $62 on average per L2,' explained phil_00Llama. He further pointed out that deploying Curve Finance on L2 chains incurs high maintenance costs.
Community Reaction to the Proposal
The proposal did not gain strong traction within the Curve community, with some members requesting more background for better context. However, Curve Finance has a total value locked (TVL) of $21.451 billion, ranking it second after Uniswap.
The discussion about stopping L2 development raises questions about Curve Finance's priorities and which strategies will be most effective for the protocol's future growth.
