[Ecosystem Grant] LEVY — Bad-Debt Recovery Marketplace for LlamaLend

Grants
1

TL;DR

I’m requesting $48,000 in CRV (milestone-based) to complete, audit, and deploy LEVY — a permissionless bad-debt recovery marketplace for LlamaLend.

LEVY wraps impaired LlamaLend vault positions into transferable LVDC ERC-20 tokens, giving lenders an immediate liquid exit at market price while providing recovery agents a path to redeem at par once the market heals.

What is LEVY?

LlamaLend’s LLAMMA handles gradual declines well, but in severe/fast crashes, bad debt can accumulate, leaving lenders with illiquid impaired positions.

LEVY creates a dedicated secondary market for these positions:

  • Wrap impaired vault shares → tradeable LVDC token

  • Permissionless recovery (organic NAV improvement or crvUSD injection)

  • Redeem at par once recovered

  • Fully on-chain, no external oracles beyond the vault’s own convertToAssets

Built in Vyper 0.4 using Moccasin + Titanoboa. Currently has 79 unit tests, 6 stateful fuzz rules × 6 invariants, and has been rebuilt post-audit feedback (v0.2).

Why this matters for Curve

  • Reduces perceived tail risk for LlamaLend lenders → increases deposits and crvUSD borrowing capacity

  • Creates a clean, auditable mechanism for the DAO or whales to inject recovery capital

  • Complements LlamaLend v2 (already on the 2026 roadmap) by solving the risk-exit problem on the supply side

Current Status

  • Core contracts (RecoveryVault.vy, DebtClaim.vy) implemented and heavily tested

  • MIT licensed

  • Remaining work: professional audit, deeper integration testing on live LlamaLend markets, mainnet deployment, and monitoring

Grant Request — $48,000 CRV (milestone structured)

Milestone Deliverable Amount
M1 — Spec & Testnet Frozen spec, threat model, public testnet deployment + council review $8,000
M2 — Audit + Fixes Independent professional audit + remediation $28,000
M3 — Mainnet + Docs Mainnet deployment on top markets, monitoring, docs, community handoff $12,000

All code will be open-sourced under MIT and I will provide bi-annual progress reports on the forum.

Relevant Background

  • Deep experience with Curve’s stack: Vyper 0.4, Moccasin contributions, SnekSentry (Vyper liquidation engine), crvUSD-related work

  • Full repo + tests available

Links

I’m happy to answer questions and adjust scope based on council feedback.

Looking forward to your thoughts!

KhomDev