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Curve launches bad-debt recovery market for damaged claims
Curve Finance launched a market-based bad-debt recovery mechanism that lets affected CRV users exit damaged claims through trading or stay in the recovery process. The design creates a pool between crvUSD and damaged claim tokens so the claims can trade and form liquidity instead of depending only on final liquidation outcomes. Curve said the mechanism does not remove losses or guarantee recovery, though veCRV incentives could deepen liquidity if governance allocates rewards.