The DeFi protocol Curve Finance has deployed the second version of its lending platform, LlamaLend, on the L2 network Optimism. The initiative aims to scale infrastructure ahead of its launch on the Ethereum mainnet.
Introducing Llamalend v2
A new lending framework built around Curve liquidity
— Use Curve LP tokens as collateral
— Isolated market risk
— Improved range-based liquidations powered by LLAMMA
— Better market securityLaunching first on Optimism.https://t.co/6N74weKk0j pic.twitter.com/cO159UNE5A
— Curve Finance (@CurveFinance) June 10, 2026
The launch was supported by the Optimism Foundation, which provided a grant of 250,000 OP (approximately $50,000). These funds will be used to stimulate liquidity and user activity over the next two months.
In LlamaLend V2, developers have removed the mandatory use of the stablecoin crvUSD in lending pairs. Users can now create markets with almost any combination of assets. The protocol has also started accepting LP tokens from Curve and PT tokens from Pendle as collateral.
Curve founder Mikhail Egorov noted that the update will simplify the platform’s use for major players:
“We tried to make the protocol more user-friendly. Users no longer need a PhD to use LlamaLend.”
An important change is the introduction of a market curator in the form of the LlamaRisk team. In the first version, anyone could create isolated pools, which, according to Egorov, added unnecessary complexity in risk assessment. Now, LlamaRisk will conduct qualitative assessments of collateral assets.
At the launch stage on Optimism, a zero borrowing limit has been set—currently, users can only make deposits. The full launch of lending markets and the start of reward distribution are expected on June 16, following a seven-day Curve DAO vote.
The deployment of LlamaLend V2 on the Ethereum mainnet is planned for the second half of 2026.
Back in April, Egorov introduced a solution to the “bad” debt problem. He proposed turning deficit positions into tradable investment instruments.