Aave Chan founder proposes buying $2M CRV from Curve founder

Amid increasing uncertainty astir Curve vulnerability for galore decentralized concern protocols, Aave Chan laminitis Marc Zeller has projected that Aave Treasury bargain $2 cardinal worthy of CRV tokens successful USDT from Curve Founder Michael Egorov.

The connection noted that the $2 cardinal worthy of Curve DAO Tokens (CRV) acquisition would nonstop a beardown awesome of DeFi supporting DeFi portion allowing the Aave DAO to strategically presumption itself successful the Curve wars and assistance Aave’s decentralized multi-collateral stablecoin GHO’s liquidity.

At the existent price, $2 cardinal worthy of USDT would nett 5 cardinal CRV tokens and Zeller suggested these recently bought curve tokens could beryllium locked arsenic veCRV for 4 years. These tokens could past beryllium utilized for voting rights connected the Curve level wherever Curve users would beryllium capable to usage it to supply liquidity for token pairs that impact GHO.

“The treasury equilibrium and the predicted little costs for work providers for the 2023-2024 fund would let this strategical acquisition portion maintaining a blimpish stance with DAO treasury holdings," the connection noted.

The connection garnered mixed reactions from the Aave assemblage wherever immoderate claimed that the DeFi protocol should look for ways to trim its vulnerability to the hazard of CRV liquidation portion adding:

“This is simply a gag and goes against the champion involvement of some Aave stakeholders and Aave lenders, conscionable to assistance a idiosyncratic who took excessively overmuch leverage. How is this decentralized finance?”

A fewer others lauded the connection claiming it would assistance the protocol to de-risk the existent CRV implicit leverage and besides assistance the GHO stablecoin growth.

Separately, Huobi's co-founder Jun Du besides purchased 10 cardinal CRV tokens for $4 cardinal from Curve Finance founder.

Related: Ethereum logs $1M MEV artifact reward amid Curve Finance exploit

Michael Egorov, the Curve founder, has full outstanding loans of implicit $100 million from assorted lending protocols. Out of this $70 cardinal indebtedness successful USDT is connected Aave v2, utilizing CRV arsenic collateral. Aave's hazard parameters authorities that CRV volition beryllium astatine hazard of liquidation if its terms falls to astir $0.32.

CRV is presently trading astatine $0.59 and a terms diminution of astir 60% would pb to liquidation. In this case, the borrower's deeded collateral volition beryllium liquidated to wage backmost the borrowed asset. This means that CRV volition beryllium sold for USDT, resulting successful atrocious debt.

Egorov has been connected a CRV selling spree to negociate his multi-million indebtedness positions. Ever since the exploit connected the Curve protocol, its laminitis has sold millions worthy of CRV tokens done over-the-counter trades.

Magazine: Should crypto projects ever negociate with hackers? Probably