🔥 The Curve team proposes to establish a special fund pool to resolve a $700k bad debt in the CRV-long market.


The Curve team has put forward a recovery plan for approximately $700k in bad debt in the CRV-long LlamaLend market.
The plan involves creating a special liquidity pool that allows participants to exchange vault tokens based on a structure similar to "option yields," thereby absorbing bad debt risk through a market-based approach.
Any user can participate, and Curve DAO can choose to participate but it is not mandatory.
The mechanism is based on LlamaLend's liquidation logic: if the CRV price rises, the bad debt position may be gradually repaired through de-liquidation and forced liquidation; if the price falls, the risk will not further expand.
The proposer states that if the mechanism succeeds, it can be extended to other similar scenarios in the future.
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