Michael Egorov proposed a Curve Stableswap pilot that would let lenders with trapped LlamaLend deposits sell tokenized claims tied to roughly $700,000 in CRV-long bad debt.
Curve founder Michael Egorov proposed a market-based recovery mechanism for about $700,000 in bad debt tied to the CRV-long LlamaLend market. The plan would convert impaired positions into tradable tokenized claims through a Curve Stableswap pool centered around 71% solvency for impaired vault tokens, allowing lenders with trapped deposits to sell their claims. Buyers would gain option-like exposure to a potential recovery in CRV, while the structure could create price discovery and secondary-market liquidity for otherwise illiquid distressed positions.