A large CRV loan built up in the last week has mostly been cleared by liquidation process on AAVE.
The position is not fully insured and CRV 2.64 million has a current value of about $1.6 million in current value remains. This is what it means.
According to the latest AAVE announcement, there was a problem in the protocol’s CRV pool on the 22nd of November. The liquidation was a success(as designed).
Excess debt was left in the deal due to the size of the position.
There was a cycle of liquidations in the CRV pool on the Aave Protocol today.
Unfortunately, the size of the position left some excess debt within the protocol, despite the fact that the liquidations were successful.
During the deal liquidation process, the bulk of the large CRV loans that were accumulated last week have been liquidated.
Allerdings, this position is not fully insured, at 2.65 million CRV Approximately 0.1% of the borrowed protocol.
The Aave ecosystem has been developed using a variety of tools, including security modules, ecosystem reserves, and DAO libraries that the community can use in response to such incidents.
will hold discussions around the event over the next few days between the community and its contributors.
@monetsupply, a community contributor, also started a discussion on the governance forum about looking at the market’s long-term asset risk.
Prior on the night of November 22, a giant whale mortgaged $63.6 million from Aave V2, borrowed CRV 92 million and moved it to an exchange to endeavor to short CRV. The loans of the giant whales who shorted CRV on Aave V2 began to be liquidated.
In the last 24 hours CRV has increased by 22.87% and is currently trading at $0.642.
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