Curve founder proposes to recover DeFi bad debts through market-based model

Curve founder Michael Egorov proposed recovering bad debts in lending agreements by converting damaged positions into tradable investment products. The plan uses Curve's own CRV-longLlamaLend market as a pilot, which generated approximately US$700,000 in bad debts in October 2025. Michael Egorov has established a CurveStableswap pool around approximately 71% solvency, allowing trading of damaged vault tokens. Traders can buy at a discount, liquidity providers can earn handling fees, and DAOs can accumulate damaged tokens through management fees. At present, feedback from the community on the plan has been mixed, with some users questioning the difficulty of attracting buyers for damaged positions that lack immediate returns.