Curve Finance proposes a market-based recovery plan for the CRV-long LlamaLend bad debt issue by establishing trading pools for crvUSD and cvcrvUSD (damaged debt certificates), providing affected users with options to exit, hold, or participate in liquidity recovery. This mechanism allows users to sell their debt at market prices in exchange for liquidity, rather than passively waiting for recovery, but does not guarantee loss compensation. Curve stated that as the CRV price rises, the repayment capacity of related positions is expected to gradually improve, and the lessons learned from this incident will be applied to risk control and parameter optimization in Llamalend V2.