The restrictions on V1 have been removed, and now both sides can hold assets to build the market. However, setting the borrowing limit to zero is quite conservative—first let people deposit money, and then gradually grant more permission. With this move, Curve is testing the market’s patience.

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CoinNetwork
Curve Finance launches LlamaLend V2 upgrade, supporting isolated lending markets
Curve Finance launches LlamaLend V2 on Optimism, adding isolated lending markets and non-CRVUSD lending pairs, with the first phase upgrade already initiated, and potentially launching on Ethereum mainnet within the year.
V2 removes V1 restrictions, allowing markets to be created on both sides of lending pairs, subject to governance approval.
Provides ETH-WSTETH, WSTETH-USDC, and WBTC-USDC markets, with an initial borrowing limit of zero.
Introduces LP collateral, depositing Curve LP tokens to earn trading fees.
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