Curve Finance has launched LlamaLend V2 on Optimism, enhancing lending options and simplifying user experience ahead of its Ethereum mainnet launch.
Curve Finance has launched the second version of its LlamaLend lending platform on the Layer 2 network Optimism. This rollout is part of Curve's strategy to enhance its infrastructure ahead of a planned mainnet launch on Ethereum.
The Optimism Foundation has played a crucial role by providing a grant of 250,000 OP, valued at around $50,000, which will support liquidity incentives and user engagement for the upcoming two months.
In LlamaLend V2, the requirement to use the stablecoin crvUSD for lending pairs has been eliminated, allowing users more flexibility to form markets with a wider range of assets. Additionally, Curve LP tokens and Pendle PT tokens are now being accepted as collateral.
According to Curve's founder, Mikhail Egorov, this update simplifies the platform's use:
“We aimed to make the protocol more user-friendly. Users no longer need a PhD to use LlamaLend.”
A notable change is the introduction of a market curator, the LlamaRisk team, which will assess collateral assets and ensure a more structured approach to risk management, as opposed to the previous open pool system that added complexity.
Currently, there is a zero borrowing limit on LlamaLend V2, with only deposit activities allowed until the full launch on June 16, 2026, following a week-long voting process by Curve DAO. The transition to the Ethereum mainnet is targeted for the latter half of 2026.
Earlier in April, Egorov had presented a strategy to address "bad" debts by converting deficit positions into tradable investment instruments.
