CRV Liquidation Crisis | After the failure of the Abracadabra Debt-forced Proposal, $10 billion voters propose a friendly version again

Curve founder Michael Egorov leveraged a large amount of assets through CRV lending, but got into a liquidation crisis due to the recent security incident causing a drop in CRV price. On 8/2, several DeFi lending protocols primarily used by Egorov have initiated or executed governance proposals, directly or indirectly pressuring Egorov to repay the loan collateralized with CRV as soon as possible. (Learn more about the debt pressure policy of lending protocols)

Abracadabra Community Proposes Friendly Version of Debt Repayment Interest Rates

The version proposed by the address masterofdisaster.eth with 10 billion voting rights is as follows.

It will reduce the basic interest rates based on different principal amounts, changing from 30%/100%/200% to 30%/80%/150%.

In addition, the original collateral-to-loan ratio used to have a multiple interest rate bonus for over 50%, but now it has been changed to have a maximum 25% impact on the basic interest rate. It can even reduce the basic interest rate when below 40%:

Additionally, considering the on-chain liquidity factor, it can further reduce the basic interest rate: