Curve Finance launches a market-based bad debt recovery plan

Curve Finance announced the introduction of a bad debt recovery plan based on on on chain market mechanisms, providing three options for CRV users who have suffered losses in some lending markets: selling debt to exit, continuing to hold and wait for repairs, or providing liquidity to earn fees and incentives. This mechanism achieves debt pricing and liquidity through a trading pool of crvUSD and damaged debt tokens, providing an instant exit channel. Curve stated that this solution cannot eliminate losses and only reflects risks and repair expectations through market-oriented means. If the governance allocates veCRV incentives, it will help improve liquidity and market pricing efficiency.