TechFlow News, April 27: The Curve Team has proposed a recovery plan for the CRV-long LlamaLend market’s bad debt. Following the incident on October 10, 2025, this market accumulated approximately 70% collateralization and a funding shortfall of roughly $700,000. The proposal outlines establishing a special Curve stableswap pool—backed by redeemable treasury tokens—to facilitate market-driven capital participation in the recovery process, without requiring permission or off-chain agreements.
According to the proposal, if CRV’s price rises, the bad debt positions can be gradually recovered through decentralized liquidation and hard liquidation; if CRV’s price falls, the collateralization level of treasury deposits will not deteriorate further. michwill has also requested that the Curve DAO approve a gauge for this pool and retain governance fees received in the form of treasury tokens.
