The Curve team proposes establishing a special fund pool to address bad debts in the CRV-long LlamaLend market.

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April 27 News, the Curve team proposed a recovery plan for approximately $700k in bad debt in the CRV-long LlamaLend market. The proposal aims to establish a special Curve stable swap pool that can exchange vault tokens, introduce market-based funding to participate in the recovery, and does not require permission or off-chain agreements. If the CRV price rises, the bad debt position can be gradually recovered through de-liquidation and hard liquidation; if CRV falls, the collateral level of the vault deposits will not further deteriorate. The proposal also requests Curve DAO to approve the gauge for this funding pool and retain management fees earned in the form of vault tokens.

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