[DigitalToday reporter Chi-gyu Hwang] DeFi protocol Curve Finance has launched Llamalend v2, an upgraded version of its lending infrastructure, on Optimism.

According to a recent report by The Block, Llamalend v2 launched on Optimism ahead of its deployment on the Ethereum mainnet.

Llamalend v2 removes collateral combination limits that had been restricted to crvUSD pairs in the previous version. Virtually all assets can be used as collateral and as borrowed assets. Curve liquidity provider (LP) tokens can also be used as collateral. Curve said this raises capital efficiency by allowing liquidity providers to borrow against their positions while maintaining them.

Curve founder Michael Egorov (마이클 에고로프) said, "It was designed so users can use it more conveniently," adding, "Using Llamalend should not require a PhD."

In Llamalend v2, LlamaRisk acts as the market curator. LlamaRisk is responsible for qualitative assessments of new collateral types such as Pendle PT tokens and for managing the market lifecycle.

Curve received a grant of 250,000 OP tokens, worth about $50,000, from the Optimism Foundation in connection with the Llamalend v2 launch. The tokens will be distributed over about two months as incentives to boost initial liquidity and activity.

Deploying first on Optimism is part of a security strategy. Egorov said it was to observe contracts and user flows in a limited environment before deploying to the higher-risk Ethereum mainnet. Mainnet deployment is expected in the second half of this year.