Curve Finance Proposes Incentives for Arbitrum and Optimism Deployments

Curve Finance has released its weekly performance metrics and top-yielding pools for Week 17 of 2026. The report highlights the best-performing liquidity pools across the Curve ecosystem, providing key data points for liquidity providers looking to optimize their returns. **Key highlights include:** - Updated yield percentages across major pools - Performance metrics and trading volumes - Comparative analysis with previous week's data This weekly snapshot helps DeFi participants make informed decisions about where to deploy their capital within Curve's liquidity pools. [Read the full report](https://news.curve.finance/curve-best-yields-key-metrics-week-17-2026/)

A community proposal has successfully passed and been executed, with strong support from DAO voters. **Key Points:** - The proposal received sufficient votes and has now been implemented - Community members expressed gratitude to all participants in the voting process - Work on implementing the approved changes will now begin The successful execution marks another milestone in the DAO's governance process, demonstrating active community participation in decision-making.

**Curve has temporarily paused its LayerZero infrastructure** following a security incident involving rsETH's LayerZero setup. The pause is a precautionary measure while the root cause is investigated. **Affected services:** - CRV token bridging from BNB Chain, Sonic, Avalanche, Fantom, Etherlink, and Kava (native bridges on other chains remain operational) - crvUSD fast bridge (L2 slow bridging continues to function) The decision reflects a cautious approach to cross-chain security. Users needing to bridge CRV or crvUSD should use alternative routes or wait for the infrastructure to resume.

**Attack Details and Impact** LlamaRisk published a postmortem analyzing the sDOLA market liquidations on LlamaLend. The exploit resulted in: - **$822,000 in borrower losses** through forced liquidations - **~$200,000 profit** for the attacker - Lenders remained unaffected **Root Cause** The attack exploited a combination of factors: - Price oracle vulnerability to donation attacks - Limited sDOLA liquidity outside the collateral market - Specific handling requirements for vault collaterals in LlamaLend **Potential Compensation** Curve DAO is considering compensating affected borrowers for the $822k loss, pending community discussion and governance vote. **Security Learnings** The incident provided critical insights before LlamaLend V2's release. Developers noted the attacker likely would have earned more through a responsible security disclosure than the exploit itself. The team is now incorporating oracle code from unreleased 2-way markets as mitigation for future vault collateral markets.

Frax is launching one of the first on-chain foreign exchange pools in partnership with KrwqCash, marking a significant step toward bringing traditional FX markets onto blockchain infrastructure. **Key Developments:** - Frax and KrwqCash are piloting FX pools to enable decentralized currency trading - frxUSD will play a central role in these emerging on-chain FX markets - Incentives are planned for the Curve Finance pool with KrwqCash This initiative represents an expansion of DeFi beyond crypto-native assets into traditional financial markets, potentially offering 24/7 trading and transparent pricing for foreign exchange.