XRP News Today: CurveDAO Proposes Halting L2 Deployments Over Poor Returns

CurveDAO has seen a notable call for a strategic shift, as member Phil_00Llama proposed ending all new Layer 2 (L2) deployments due to concerns over poor returns and high development costs [1]. This move comes as the DeFi ecosystem continues to grapple with the effectiveness of multi-chain expansion. The proposal argues that the current L2 strategy is no longer sustainable, given that nearly all of Curve’s $2.3 billion in total value locked (TVL) resides on Ethereum Layer 1, while L2 platforms like Arbitrum and Base combined hold only around $50 million [1]. The economic disparity is stark—mainnet pools can generate 450 times more revenue than all L2 pools combined, even on days with low volume [1].

The rationale for the proposal centers on resource allocation. Phil_00Llama suggests that developer efforts would be better spent on scaling Curve’s Ethereum-based stablecoin, scrvUSD, rather than maintaining underperforming L2 deployments [1]. Another DAO participant supports this view, highlighting that the combined daily revenue from L2 platforms is only about $1,500, despite high maintenance costs and the fast-changing nature of sidechain ecosystems [1]. This sentiment reflects a broader shift within the DeFi community, as some participants question the value proposition of Layer 2 networks, particularly when returns have not met expectations.

If approved, the proposal would halt all future L2 deployments and redirect focus toward optimizing existing infrastructure and enhancing core products on Ethereum [3]. The move aligns with a growing trend of DeFi protocols reevaluating expansion strategies in light of rising operational costs and diminishing returns. The final decision will depend on the CurveDAO voting process, with community members weighing the trade-offs between continued multi-chain presence and a more focused, core-driven approach.

While Curve Finance considers a more centralized strategy, other blockchain projects continue to explore L2 solutions. For example, the XRP Ledger has recently seen increased adoption, including the deployment of an EVM-compatible sidechain that attracted over 1,400 smart contracts within a week [4]. This contrast underscores the varied strategies being pursued across the DeFi landscape.

Sources:

[1] Coindoo, [https://coindoo.com/curvedao-proposal-calls-for-ending-new-layer-2-deployments/](https://coindoo.com/curvedao-proposal-calls-for-ending-new-layer-2-deployments/)

[3] cryptonsole.com, [https://www.cryptonsole.com/curvedao-member-seeks-end-to-layer-2-expansions/](https://www.cryptonsole.com/curvedao-member-seeks-end-to-layer-2-expansions/)

[4] Coindoo, [https://coindoo.com/xrp-ledger-adoption-climbs-with-1-million-new-users-in-2025-as-cto-invests-in-network-upgrades/](https://coindoo.com/xrp-ledger-adoption-climbs-with-1-million-new-users-in-2025-as-cto-invests-in-network-upgrades/)