Aave proposal to freeze alleged Curve founder’s loans draws controversy
Onslaught revealed fears that this account might continue increasing its debt, leading to the danger that it may be liquidated if there is an abrupt fall in the rate of Curve. This would permit the account to continue holding its current loan position but would also avoid it from collecting any more debt.Related: Bug in Aave v2 on Polygon triggers some assets to end up being stuck in contractsSome forum participants supported the proposal and slammed the account for stacking on so much financial obligation. A user who goes by the manage “AAVEBull” reportedly claimed that the account should have no intent of paying off its financial obligations given that it has actually continually added to its position as the token has declined in price.In reaction, critics of the proposal safeguarded the account.
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Gauntlet expressed worries that this account might continue increasing its debt, leading to the risk that it might be liquidated if there is a sudden fall in the cost of Curve. Cointelegraph was not able to confirm the identity of the addresss owner.In the proposal, Gauntlet recommended that the AAVE decentralized self-governing organization (AAVE DAO) must execute a spot to freeze any additional usages of CRV as security for loans. This would enable the account to continue holding its current loan position however would likewise avoid it from building up any additional debt.Related: Bug in Aave v2 on Polygon causes some assets to become stuck in contractsSome forum participants supported the proposal and slammed the account for stacking on so much debt. A user who goes by the manage “AAVEBull” apparently declared that the account should have no intent of paying off its financial obligations considering that it has actually continuously included to its position as the token has actually declined in price.In reaction, critics of the proposition defended the account.
A June 12 AAVE (AAVE) proposal focused on avoiding a specific account from building up more financial obligation has caused controversy, with some individuals arguing that the proposal breaches the principle of censorship-resistance or “neutrality” in decentralized financing, or DeFi.Some participants believe that the account is owned by Curve (CRV) creator Michael Egorov. Cointelegraph was unable to separately validate who the accounts owner is.Uhh appears like Curves creator has a $110m utilize position against his $CRV stack across all Defi.If not repaid eventually (spoil: it prob wont, my male is taking profit), this will waterfall into a lot of uncollectable bill for lending procedures https://t.co/kxwc0Sk65V pic.twitter.com/yhHp9JFWBV— vapor (@trading_vapor) June 14, 2023