Curve Says Ethereum Glamsterdam Upgrade May Ease DeFi Congestion

Curve Finance said the pending Glamsterdam upgrade on the Ethereum network could make complex DeFi operations more reliable by expanding blockspace capacity. In main‑net checks, a leveraged borrowing transaction consumed roughly 1.84 million gas, while a direct stable‑coin swap used about 125 k gas, a 14.7‑fold difference.

Expected Benefits for DeFi

The protocol expects the added capacity to help borrowers, arbitrage traders and liquidators during periods of high demand. Faster, cheaper execution could make smaller arbitrage routes viable and improve price efficiency in Curve’s pools. The team stresses that real‑world congestion performance—not just the block‑gas limit—will determine the upgrade’s value.

Gas Repricing Risks

Glamsterdam also reprices state‑operation costs. Curve warned that some contract calls may require higher gas limits, echoing an Ethereum Foundation advisory that many contracts remain compatible but could fail without adjustments. Developers are urged to test against EIP‑8037 (state creation) and EIP‑8038 (state access) changes before main‑net activation.

Impact on Liquidations

During volatile market moves, liquidators, oracle updates and borrowers compete for blockspace. Curve’s LLAMMA liquidation mechanism could benefit from reduced delays, limiting losses from price slippage and supporting the stability of its crvUSD stablecoin.

Key facts

• Leveraged borrow used ~1.84 M gas vs 125 k for a simple swap.
• Ethereum developers prepared a 200 M gas test; not yet main‑net limit.
• Repricing may increase gas for some state‑heavy actions.
• Faster liquidations could curb losses in volatile periods.
• Curve advises monitoring transaction inclusion times and fees under load.