The Aave community has rejected a proposal raised by DeFi infrastructure company Gauntlet through voting, which recommended freezing $CRV and setting $CRV LTV to 0 on Aave V2 Ethereum. It means that Curve founder Michael Egorov's $CRV collateral on Aave V2 will not be frozen.
As of June 10th, Egorov borrowed $71 million stablecoins on Aave V2 against around 291 million $CRV, which was around 33% of the circulating supply of the token. Gauntlet said it has been looking into the risk profile of Egorov's address, and recommended freezing $CRV collateral and setting $CRV LTV to 0 on Aave V2 to prevent Egorov from continuing to add $CRV and increasing concentration risk, due to the decrease in $CRV liquidity over the past few months. Meanwhile, Gauntlet said it didn't support restricting any specific address. Instead, it encouraged migrating $CRV collateral to Aave V3, where risk parameters are better suited for the $CRV market.
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DeFi
Aave
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