Aave

Ethereum

Polygon

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  Aave tokenholders are voting on three proposals that could reshape the protocol’s exposure to the Curve DAO token. 
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<div class="cointelegraph"> 
 <p>The Aave community is seeking to <a rel="noopener noreferrer nofollow" title="reduce" href="https://thebittimes.com/tag/reduce.html">reduce</a> its protocol <a rel="noopener noreferrer nofollow" title="exposure" href="https://thebittimes.com/tag/exposure.html">exposure</a> to the Curve DAO token, with two <a rel="noopener noreferrer nofollow" title="proposal" href="https://thebittimes.com/tag/proposal.html">proposal</a>s open for <a rel="noopener noreferrer nofollow" title="voting" href="https://thebittimes.com/tag/voting.html">voting</a> on Aug. 10. The move comes in an attempt to limit the risk posed to the lending protocol by the large borrowing position held by Curve Finance founder Michael Egorov.</p> 
 <p>Curve DAO&nbsp;(CRV) is the native token of the decentralized finance (DeFi) protocol Curve Finance. Egorov deposited over 30% of CRV’s total market capitalization as collateral to take out nearly $60 million in loans on Aave v2. However, Curve’s hack on July 30 impacted its token price, making Egorov’s position vulnerable to liquidation. </p> 
 <p>Until Aug. 12, Aave tokenholders can vote on two <a rel="noopener noreferrer nofollow" title="proposal" href="https://thebittimes.com/tag/proposal.html">proposal</a>s. One seeks to <a rel="noopener noreferrer nofollow" title="reduce" href="https://thebittimes.com/tag/reduce.html">reduce</a> the liquidation threshold by 6% for CRV on Aave v2, which could result in user accounts becoming subject to liquidation upon approval. The second disables borrowing of CRV on Ethereum and Polygon v3, thus disabling the ability to short CRV via the Aave protocol.</p> 
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  <img src="https://cdn.thebittimes.com/images/2023/08/11/491a291bc68a456b5fb13a41adceab50.webp" alt="" title=""> 
  <figcaption style="text-align: center;"> <em>Proposal to reduce the liquidation threshold for CRV on Aave v2 on Ethereum. Source: Aave</em> 
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 <p>At the time of writing, over 571,000 votes have been cast, with 100% of holders supporting limiting Aave’s exposure to CRV.</p> 
 <p>Amid fears of liquidation surrounding Egorov’s loans, the Aave community is also <a rel="noopener noreferrer nofollow" title="voting" href="https://thebittimes.com/tag/voting.html">voting</a> on a third <a rel="noopener noreferrer nofollow" title="proposal" href="https://thebittimes.com/tag/proposal.html">proposal</a> ending on Aug. 11. In the <a rel="noopener noreferrer nofollow" title="proposal" href="https://thebittimes.com/tag/proposal.html">proposal</a>, Aave Chan founder Marc Zeller&nbsp;calls for the Aave Treasury to buy $2 million worth of CRV tokens from Curve, claiming it would signal that DeFi players support the health of the ecosystem. At the time of writing, 62.91% of voters&nbsp;support the purchase, while 37.09% are against it. </p> 
 <p>Curve’s attack sparked fears of cascading effects across the DeFi ecosystem. Behind the hack was a vulnerability on three versions of Vyper — a common programming language across DeFi protocols. The vulnerability triggered white hat and black hat hackers battling on-chain, fighting over exploit attempts and money recoveries. A portion of the funds has been returned by the attacker. Curve Finance is offering a bug bounty to anyone able to identify the thief. </p> 
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Aave DAO opens voting on proposals to reduce CRV exposure

TheBitTimes

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