Founder of delegate platform Aave Chan Initiative (ACI), Marc Zeller, has proposed that the Aave Treasury purchases $2 million worth of CRV tokens from Curve founder Michael Egorov.
This proposal comes days after Curve Finance suffered an exploit causing a CRV price decline that has endangered Micheal’s Egorov’s loan positions on various lending protocols.
According to blockchain research company Delphi Digital report on August 1, Egorov owes approximately $100 million in loans on lending protocols Aave and Frax Finance.
Interestingly, these loans are collateralized by 427.5 million CRV, i.e., 47% of the token’s circulating supply. Following CRV’s price decline this week, these loan positions could be liquidated, which could be risky for the entire DeFi space.
So far, several notable crypto players have bought CRV in over-the-counter trades from Ergorov. These include Tron founder Justin Sun, DWF Labs, and, most recently, Huobi co-founder Jun Du.
Related Reading: Buying The Dip: Tron Founder Justin Sun Buys 5 Million CRV In OTC Deal
Let’s Show DeFi Supporting DeFi, Zeller Says
Marc Zeller is a popular figure in the Aave network, having headed the protocol’s integrations team between 2020-2022.
In his proposal submitted on the Aave governance forum on Aug. 3, Zeller suggests the purchase of $2 million worth of CRV using…
