CryptoWorld News reports that, according to CoinDesk, Curve founder Michael Egorov proposed a market-based solution to address approximately $700k in bad debt related to LlamaLend. In a governance post, he stated, "I suggest adopting a free-market recovery approach as an investment for each person willing to participate in this effort." The bad debt loss occurred in LlamaLend's CRV-Long market, which allows users to borrow Curve's CRVUSD stablecoin using CRV as collateral. Egorov hopes to bundle the affected loan positions into tokenized vaults, enabling traders to buy and sell these positions through dedicated Curve pools. At the same time, external buyers can determine the value of the distressed claims.

CRV-0.22%
CRVUSD3.09%
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