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Aave Community Rejects Gauntlet Proposal to Address Risk from Michael Egorov's Substantial Loan

June 19 (Cointime) - The Aave community unanimously rejected a proposal from DeFi risk management project Gauntlet to freeze CRV tokens on Aave v2 and reduce the loan-to-value ratio for CRV to zero.

The proposal was designed to address the risk arising from a large CRV loan acquired by Curve founder Michael Egorov, who borrowed approximately $60 million in USDT and provided a collateral of 285 million CRV tokens valued around $176 million.

The loan drew attention due to the size of the collateral, which represents over 30% of the total circulating supply of CRV. While Gauntlet argued that the proposed freeze could incentivize Egorov to decrease his borrowing or diversify his collateral types, the Aave community firmly established its stance against the proposal.

Egorov's loan account has maintained a health factor above 1.6, indicating no immediate bad debt risk to Aave.

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