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Aave Community Passes Proposal To Prevent Additional CRV Borrowing Proposal 286 “Gauntlet Recommendation for CRV LTV -> 0 on Aave v2 Ethereum” was passed unanimously by the community. The proposal received 100% “Yes” votes to block additional borrowing against CRV . advertisement Gauntlet has been looking into the risk profile of Curve Finance founder Michael Egorov. The account borrows roughly $54 million of USDT against $158 million of CRV . However, Egorov is quickly paying off his $80 million debt through OTC sales of CRV tokens. Currently, a loan of roughly $29 million of USDT against $116 million of CRV on Aave is pending, as per DeBank data. “We recommend setting CRV LTV to 0 to help impede additional borrowing against existing CRV collateral due to the recent decrease in CRV liquidity.” Curve Finance pools suffered a $61 million hack last week. While the hacker has started to return funds, the DeFi platform ...

The proposal drew mixed reactions from the community where some criticized the strategy for buying more CRV even as others are looking to shed exposure. Amid growing uncertainty around Curve exposure for many decentralized finance protocols, Aave Chan founder Marc Zeller has proposed that Aave Treasury buy $2 million worth of CRV tokens in USDT from Curve Founder Michael Egorov. The proposal noted that the $2 million worth of Curve DAO Tokens (CRV) acquisition would send a strong signal of DeFi supporting DeFi while allowing the Aave DAO to strategically position itself in the Curve wars and help Aave’s decentralized multi-collateral stablecoin GHO’s liquidity. At the current price, $2 million worth of USDT would net 5 million CRV tokens and Zeller suggested these newly bought curve tokens could be locked as veCRV for four years. These tokens could then be used for voting rights on the Curve platform where Curve users would be able to use it to provide liquidity for token pairs that...