Aave DeFi Treasury Proposes $2M Purchase of Curve Tokens from Founder Egorov!

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Aave Chan Initiative, a delegate platform on Aave’s governance forum, has proposed that the DeFi protocol’s treasury acquire $2 million worth of Curve Tokens (CRV) from Curve founder Michael Egorov. This would result in 5 million CRV being locked up and turned into veCRV, which enables voting rights on the Curve platform and incentivizes Curve users to provide liquidity for token pairs that involve Aave’s stablecoin. However, some governance participants have expressed concerns that the proposal could increase Aave’s exposure to the risk of CRV liquidation. The proposal will need to pass a vote to be implemented.