Curve founder proposes clearing bad debt and opening the treasury for token exchanges

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CryptoWorld News reports that Wu learned that Curve Finance founder Michael Egorov submitted a proposal at the Curve governance forum stating that the CRV-Long Llamalend market generated bad debt after a market crash on October 10, 2025. Approximately 70% of the related treasury assets provide support, and the shortfall is about $700k. Egorov proposed, based on Llamalend’s internal mechanisms, opening a treasury token exchange through a special funds pool, to clear under-collateralized loans and restore the bad debt through a free-market approach. This mechanism is fully permissionless, requires no behind-the-scenes agreements, and Curve DAO may participate but is not required. Egorov said that he has set up a Curve Stableswap pool with an A parameter of 2, liquidity concentrated around an approximately 71% repayment rate, and a swap fee of 1%. Egorov requested Curve DAO to approve the funds pool gauge for exchanging treasury tokens. Market participants can study the related opportunities, and arbitrage traders can develop bots.

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