Pangea publishes research showing that structural flows from YieldBasis tightly couple the crvUSD system to BTC price movements. In partnership with LlamaRisk, they are working on recommendations to support Curve and YieldBasis in scaling to the $1bn credit line currently being voted on.

"TL:DR YieldBasis flows are becoming an increasingly large portion of crvUSD volume through PegKeeper pools. These flows are skewed to either the sell or buy side depending on whether BTC is pumping or dumping, as this causes large in/outflow of crvUSD from YieldBasis into Curve. These one-sided flows create pressure on the peg. This pressure is being effectively managed by the PegKeepers and dynamic borrowing rates. However, both of these are working overtime to keep crvUSD stable, resulting in increased volatility in borrowing rates, which is undesirable for Curve's lending business. As a result, the stability of the crvUSD system as a whole - which includes not just crvUSD price but also Curve's borrow rates - is becoming tightly coupled to BTC price movements."

Top comment by @Spencer420

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