Curve founder proposes market-based fix for $700K bad debt via tokenized claims pool

Curve founder Michael Egorov proposed a market-based solution to address $700,000 in bad debt on LlamaLend, Curve's lending platform. Instead of a bailout, trapped lenders can sell tokenized claims on their deposits in a dedicated Curve pool, allowing buyers to bet on CRV's recovery. This contrasts with the recent $230 million Aave bailout, offering a free-market approach where the value of distressed claims fluctuates with CRV's price. The plan aims to give lenders an exit option while letting the market determine the claims' worth, potentially serving as a model for future DeFi bad debt issues.