An replace on the Aave governance discussion board means that the neighborhood has handed the “aCRV OTC” proposal, which proposes the strategic buy of CRV tokens by means of the utilization of USDT from the collector contract, Aave DAO treasury.
Furthermore, the governance proposal goals to safe 5 million Curve DAO Tokens (CRV). The neighborhood has displayed evident divergence of opinion concerning this proposal, as over 42.19% of the votes oppose the CRV acquisition association. Conversely, virtually 58% of the neighborhood has forged their vote in favor of advancing with the deal, which is anticipated to be enforce inside the upcoming 24 hours.
Aave DAO’s transfer is an effort to seize a good portion of Curve Finance’s liquidity by prioritizing swimming pools with greater CRV rewards. The distribution of CRV rewards amongst these swimming pools is guided by the dominance of protocols holding substantial veCRV token quantities. On the discussion board, Aave famous:
The treasury steadiness and the anticipated decrease prices for service suppliers for the 2023-2024 finances would enable this strategic acquisition whereas sustaining a conservative stance with DAO treasury holdings.
Curve Finance founder Michael Egorov has utilized greater than 30% of CRV’s general market capitalization as safety to accumulate loans amounting to roughly $60 million from Aave v2.
Nonetheless, the current hack on Curve, which transpired on July 30, has had a unfavorable impression on the token’s worth. Consequently, Egorov’s place is now liable to being liquidated as a result of this decline in token value.
The current exploit of Curve Finance
As well as, Aave can be aiming to advertise liquidity for its native stablecoin GHO. To attain this, the protocol intends to lock CRV tokens to amass Curve voting affect and set up a devoted gauge for GHO, in the end enhancing secondary liquidity for GHO.
In the meantime, the Aave neighborhood presently considers two proposals aimed toward minimizing CRV publicity. The preliminary proposal targets a 6% discount within the liquidation threshold for CRV on Aave Ethereum V2 and is on observe for approval, garnering unanimous assist within the votes. The second proposal goals to droop borrowing of CRV on Ethereum and Polygon V3, encountering no opposition so far and scheduled for implementation after August 13, 2023.
