Curve Finance (CRV) has proposed a solution for the bad debts incurred in its Curve Lending system, Llamalend. The core of this proposal is to attract external funds by building a Curve stable swap pool where Volt tokens can be exchanged, and to operate it without separate approvals or over-the-counter contracts. This pool is designed to gradually normalize through a process where bad debt positions are forcibly liquidated when the CRV price rises, and even if the price falls, Volt's collateral ratio will not further deteriorate.
