Aave community's new proposal formulates a solution to address the $1.6 million bad debt

ChainCatcher news, the DAO economic infrastructure Llama and the on-chain risk simulation platform Gauntlet have submitted a governance proposal on Aave, requesting the use of the Gauntlet bankruptcy fund and the Aave treasury to cover $1.6 million in bad debt related to the CRV market. The Gauntlet bankruptcy fund holds 4,923 staked AAVE tokens, currently valued at approximately $280,000, while the Aave treasury is valued at around $165 million, available to cover the excess debt.

The Aave DAO community will discuss the proposal in the coming days, and Gauntlet and Llama will provide details on how the debt coverage process will unfold. (source link)