Curve Launches Llamalend v2 on Optimism, Receives 250,000 OP Incentive

According to The Block, Curve Finance has launched Llamalend v2, its upgraded lending protocol, on Optimism on June 10. The deployment received 250,000 OP tokens (approximately $50,000) in incentive subsidies from the Optimism Foundation, allocated for liquidity and activity rewards over the next two months.

Llamalend v2 removes the previous restriction of supporting only crvUSD, now allowing nearly any collateral and borrowing asset combinations. Users can leverage Curve LP tokens as collateral while maintaining market-making exposure to optimize capital efficiency. Initial borrowing limits will remain at zero, with only lending enabled. Full functionality is expected to gradually roll out starting June 16 following a seven-day DAO vote on borrowing caps. The protocol will deploy to Ethereum mainnet in the second half of 2026.