- The Aave community has made a proposal to buy out an additional share of CRV.
- Mark Zeller insists that this will support the DeFi sector and positively impact GHO’s position going forward.
- Before that, CRV tokens were bought out by Justin Sun and Doo Joo. The founder of Curve Finance is selling them at below-market rates to pay off loans.
Aave Chan founder Mark Zeller has made a $2 million offer to buy back CRV tokens from Mikhail Egorov, founder of the Curve Finance exchange. In his words, it is a strategically advantageous decision that will support the DeFi ecosystem and boost the liquidity of the GHO stablecoin.
Zeller proposes to fund the investment from the Aave DAO treasury. At the time of writing, CRV is trading at $0.58, according to CoinMarketCap. In that case, if the decision is approved, about 5 million tokens would come under the control of the platform.
Zeller allowed that the funds received could be converted into veCRV and locked in for a period of 4 years. These tokens are expected to later give voting rights to Aave’s quorum in Curve Finance’s management, which in turn will intensify liquidity inflows to pair with GHO.
The proposal has drawn mixed reactions. Some commentators in the discussion suggested that the protocol should try to reduce its commitment to Curve Finance’s collapse risk rather than the other way around.
Huobi co-founder Du Jue had earlier announced the purchase of 10 million CRVs for $4 million. When asked why he was investing in a project on the verge of collapse, he called Curve Finance an innovative and structurally important protocol.
What’s going on with Egorov Exchange?
We’ve covered this case study in detail in a separate piece. Note that due to a series of events, the CRV exchange rate has “sagged” significantly, and this has put numerous loans of the founder of Curve Finance at risk of forced liquidation.
One of the loans is registered to Aave. In this regard, the experts of the Gauntlet project recommended the quorum to freeze the stock of CRV.
Egorov himself tried to solve the situation by selling tokens on the OTC market at a price lower than the current one. Some of it was bought out by Justin Sun, the founder of Tron.
Some of it was bought out by Justin Sun, the founder of Tron.