In response to a malicious hacking event that resulted in the depletion of $61 million from Curve Finance, the Aave community has set forth a proposal to curtail further CRV borrowing. The proposal has successfully concluded with a positive affirmation from the community’s votes.
In an effort to safeguard Aave and the wider DeFi ecosystem, the firm Gauntlet Group has put a Proposal titled “Gauntlet Recommendation for CRV LTV -> 0 on Aave v2 Ethereum” to the Aave community.
The community responded with overwhelming support, as the proposal received a unanimous 100% “Yes” votes. Consequently, additional borrowing against CRV has been effectively halted due to the inherent risk of liquidating Curve Finance founder Michael Egorov’s debt.
As outlined in the proposal, Gauntlet has conducted an examination of the risk associated with the account 0x7a16ff8270133f063aab6c9977183d9e72835428, which is under the control of Curve Finance founder Michael Egorov.
This particular account has borrowed around $54 million of USD against $158 million of CRV.
The focal point of the proposal lies in the suggestion to establish a “CRV LTV to 0 to help impede additional borrowing against existing CRV collateral due to the recent decrease in CRV liquidity.”
Also Read: Curve Finance Launches Open Bounty as Hacker’s Miss Deadline
