Aave Proposal To Prohibit Curve Finance CRV Borrowing Officially Passed
The Aave community has approved the proposal to prohibit additional CRV borrowing, with a 100% support rate. The risk management firm Gauntlet proposes the Aave community to block Curve DAO Token (CRV) borrowing to prevent the liquidation risk of Curve Finance founder Michael Egorov’s debt that could trigger a contagion and possibly a DeFi crash.
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.
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 decides to drag the exploiter to court as the deadline for the voluntary return of funds has passed.
Meanwhile, Curve Finance founder Michael Egorov is almost halfway to paying off his $80 million debt through OTC sales of CRV tokens. As a result, CRV token price jumped 10% on Saturday.
Also Read: XRP Advocate’s Bold Bet, Counting On SEC Appeal Failure In Ripple Case
CRV Price Looks Weak
CRV price fell 0.50% in the past 24 hours and 5% in a week, with the price currently trading at $0.61. The 24-hour low and high are $0.608 and $0.619, respectively.
The price witnessed recovery but the momentum is now weak. The trading volume also fell 70% in the last 24 hours, indicating a lack of interest from investors.
Also Read: LUNC Proposal To Re-Enable Terra Luna Classic IBC To Cosmos Chain Passed
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Trump Tariff Tensions Ease as U.S. and China Hold Positive Trade Talks Ahead of Oct 30 Summit
- Polymarket Hits $20B in Trading Volume, Announces Plans for Massive POLY Token Airdrop
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
