CurveDAO member known as phil_00Llama has proposed to halt the expansion of the decentralized exchange Curve Finance onto Ethereum Layer 2 networks. This follows a similar call by Aave co-founder Marc Zeller.
Rationale for the Proposal
In a post on the CurveDAO forum, phil_00Llama stated, 'L2s consume the time of talented developers. Each of these chains requires as much care as Ethereum, but the returns are minimal. By cutting development in this area, Curve can focus on more productive aspects.'
Comparison of Revenue
According to DeFiLlama data, Curve Finance is active on about 25 chains including Arbitrum and Polygon, but nearly all of its total locked value, around $2.3 billion, is on the Ethereum mainnet. 'Curve’s pools on the Ethereum mainnet generate 450 times more revenue than all L2s combined, even on the slowest day,' phil_00Llama mentioned.
Overall Context and Implications
Some CurveDAO members noted that L2 deployments generate only around $1,500 per day in revenue, making it an inefficient strategy given the high maintenance costs. One member suggested that developers should focus on 'more meaningful work.'
The proposal to halt Curve Finance's expansion onto L2 networks raises important questions about the viability of this development direction and leads to discussions about more efficient resource utilization.
