Marc Zeller, the founding father of governance delegate platform Aave Chan Initiative, proposed acquiring CRV tokens from Curve founder Michael Egorov, who is currently on the ropes making an strive to guard his debt positions from being liquidated.

The proposal requires the Aave decentralized self reliant organization (DAO) to bag $2 million price of CRV using USDT from the protocol’s Treasury. The obtained tokens may possibly possibly be veteran to incentive liquidity for Aave’s newly launched decentralized stablecoin GHO.

“A 2M USDT price of CRV acquisition would send a solid signal of DeFi supporting DeFi, whereas allowing the Aave DAO to strategically situation itself in the Curve wars, benefiting GHO secondary liquidity,” wrote Zeller in Aave’s governance forum.

The neighborhood’s response to the proposal turned into once blended. Some users opined that the transfer may possibly possibly be a win-win for Aave as it can possibly possibly de-threat the most novel CRV over leverage, whereas also supporting GHO’s growth. Others mediate the proposal does rather the different, arguing that Aave must be shopping for methods to gash its publicity to CRV liquidation in preference to increasing it extra.

“This proposal suggests to advise the treasury USDT (funds that may possibly neatly be compulsory to conceal losses in case of CRV liquidation), to elongate even more Aave publicity to CRV. Here’s a comedian narrative and goes in opposition to the appropriate interest of every Aave stakeholders and Aave lenders, appropriate to support a user who took too great leverage. How is that this decentralized finance?” acknowledged one user on the governance forum.

Egorov’s on-chain debt aloof stands at $80 million no topic his most gripping efforts to lift liquidity, most of which has been thru over-the-counter (OTC) presents.