Curve DAO Votes on Making CRV Yield-Bearing

Plus: 🪙 Grayscale eyes ETH staking, 💵 Coinbase launches 10.8% USDC lending, 💳 PayPal’s PYUSD goes cross-chain with LayerZero.

Author

Juan Aranovich
September 19, 2025

Hi! In today’s edition:

  • 🔄 CRV may soon earn yield for holders

  • 🤑 Grayscale could earn $276M staking ETH

  • 📈 Coinbase offers up to 10.8% on USDC

  • 🌍 PYUSD spreads across 9 blockchains via LayerZero

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Curve DAO Votes on Proposal to Make CRV Yield-Bearing

The Curve Finance community is voting on a proposal called "Yield Basis" to convert the CRV governance token into a yield-bearing asset.

Introduced by Curve founder Michael Egorov, the proposal calls for allocating 35% to 65% of the protocol's revenue to veCRV stakers and an additional 25% of the revenue to the Curve ecosystem.

A $60 million credit line will be used to mint crvUSD, Curve's overcollateralized stablecoin, which will be allocated to three bitcoin-focused liquidity pools – WBTC, cbBTC, and tBTC – each capped at $10 million. 

The pools intend to mitigate impermanent loss and provide sustainable income to token holders.

Voting commenced on Wednesday and has already garnered 97% approval from 15.09 million veCRV early votes. 

Grayscale Prepares to Stake ETH From Ether ETF: Arkham 

Grayscale might be gearing up to stake part of its substantial ether holdings from its ETHE ETF, based on a series of onchain transactions seen on analytics platform Arkham.

“They've moved over 40K ETH in the last hour as they position (1.5M ETH) for staking rewards. They are the first Ethereum ETF in the US Markets to do so,” noted onchain analyst Emmett Gallic on X. 

The specific structuring of transactions – in batches of 3,200 ETH each equaling exactly 100 validators – strongly suggests it will be used for staking purposes, Gallic explained.

He also suggested that if Grayscale were to stake its 1.5 million ETH stash at a rate of between 3% and 4%, it could earn as much as $276 million per year, based on the current price of ETH.

Grayscale’s moves come after the U.S. Securities and Exchange Commission (SEC) indicated last month that some forms of liquid staking wouldn’t fall under the securities regulator’s jurisdiction.

Coinbase Users Could Earn 10.8% From New USDC Lending Program

Coinbase has launched a new onchain lending product that allows users to lend their USDC stablecoin holdings and earn yields up to 10.8% annually.

The new product is part of an integration with decentralized lending protocol Morpho and facilitated by Steakhouse Financial on Coinbase’s layer 2 network Base.

Essentially, the feature routes user USDC deposits across optimized DeFi lending pools via smart contract wallets directly within the Coinbase app. 

However, it is currently only available to a limited set of users in the U.S. (outside New York) and a handful of other countries, including South Korea and the UAE.

PayPal’s PYUSD Integrates LayerZero to Expand Across Blockchains

PayPal’s U.S. dollar stablecoin, PYUSD, has expanded to nine other blockchain networks through an integration with interoperability protocol LayerZero.

The integration means PYUSD is now also available on chains like Tron, Avalanche, Sei and Aptos, outside of its native deployments on Ethereum, Solana, Arbitrum, and Stellar.

The cross-chain availability will be powered by LayerZero’s Stargate Hydra bridge and Omnichain Fungible Token (OFT) standard. It will feature a version of PYUSD called PYUSD0, which will be fully fungible and part of the same liquidity pool across supported networks.

The new capabilities place PYUSD, which has grown its supply to $1.3 billion, in direct competition with other large stablecoins in the DeFi space.

“Launches like this make it obvious that we are at the start of a global financial market that breaks down borders and works around the clock,” said LayerZero co-founder and CEO Bryan Pellegrino in a statement.

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