Aave Community Rejects to Freeze CRV Tokens
The Aave community has met Gauntlet’s proposal to lock credit collateral in Curve DAO (CRV) tokens in the second version of the protocol with unanimous vote against it.
The proposal suggested freezing CRV and reducing the loan-to-asset ratio to zero, due to the large loan of ~$67.7 million in stablecoins secured by CRV, linked to Curve Finance founder Michael Egorov.
On June 10, Egorov’s wallet deposited an additional 38 million tokens on Aave V2, bringing the total Collateral amount to 290 mln CRV (~$185 mln), which is about 34% of the total market supply.
Experts argued that freezing the funds might encourage Yegorov to reduce the loan amount or diversify the collateral, so as to guard Aave from potential debts arising from a decrease in liquidity of CRV tokens.
Additionally, the coin lock would make it easier to transfer credit to version 3 of Aave.
