Aave Chan founder proposes buying $2M CRV from Curve founder
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 involve GHO.
The proposal garnered mixed reactions from the Aave community where some claimed that the DeFi protocol should look for ways to reduce its exposure to the risk of CRV liquidation while adding:
A few others lauded the proposal claiming it would help the protocol to de-risk the current CRV over leverage and also help the GHO stablecoin growth.
Separately, Huobi's co-founder Jun Du also purchased 10 million CRV tokens for $4 million from Curve Finance founder.
Related: Ethereum logs $1M MEV block reward amid Curve Finance exploit
Michael Egorov, the Curve founder, has total outstanding loans of over $100 million from various lending protocols. Out of this $70 million loan in USDT is on Aave v2, using CRV as collateral. Aave's risk parameters state that CRV will be at risk of liquidation if its price falls to around $0.32.
CRV is currently trading at $0.59 and a price decline of
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