Curve DAO selects yRisk as new risk provider for crvUSD and Llamalend

Curve DAO just handed the keys to its risk management operation to a team of two people. yRisk, a small automation-first outfit, has been formally appointed as the new risk assessment and market monitoring provider for both crvUSD mint markets and Llamalend isolated markets.

The preference vote wasn’t even close. 536.9 million CRV tokens backed yRisk in what amounted to a unanimous endorsement from Curve’s governance participants. A binding funding vote followed, closing around September 2, 2026, to finalize the mandate.

Out with LlamaRisk, in with yRisk

The transition comes after LlamaRisk, Curve’s primary external risk provider since 2021, wrapped up its mandate on June 30, 2026. LlamaRisk returned unvested crvUSD to the Curve treasury upon departure and has since shifted its focus exclusively to Aave.

yRisk’s scope covers a wide mandate: collateral evaluations, parameter monitoring, alerts during periods of market stress, and biannual public health updates on the protocol’s lending markets.

Why the timing matters: Llamalend v2

This isn’t just a routine vendor swap. Curve is in the middle of a significant infrastructure upgrade with the launch of Llamalend v2, which went live on Optimism in June 2026 with a 250,000 OP grant to support its rollout.

Llamalend v2 allows for more flexible combinations of collateral and borrowing assets, expanding pairings beyond crvUSD. Every new collateral-borrowing pair needs governance-approved parameters, stress testing, and ongoing oversight.

The older v1 markets are being phased out as v2 rolls forward.

crvUSD holding its ground

crvUSD has maintained its peg between $0.997 and $1.000 through recent market volatility. Holdings of scrvUSD, the staked version of the stablecoin, have also increased significantly, acting as a stability buffer for the broader system.

What this means for Curve’s competitive position

LlamaRisk’s departure to focus solely on Aave reveals how the risk management market in DeFi is maturing, with providers specializing and choosing protocols that align with their methodologies. Aave retained LlamaRisk. Morpho has its own risk framework. Curve chose a two-person team while its competitors scale up their risk operations.

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