Thanks to LlamaRisk for moving quickly on this — the 0% policy, loan_discount reduction, and gauge kill together look like the proper market wind-down. Worth noting #1391 now has ~117M veCRV FOR with no opposition and just crossed quorum after Stake DAO’s vote today; on current pace it should pass cleanly before the 25th.
To sevenz’s question — a few honest observations from reading the vault state on-chain:
- After #1391 passes, the market is effectively frozen in “run-off” mode: no new borrows, 0% interest, existing positions can self-repay or sit. saintrat is right that current borrowers
are unaffected (and yes, effectively get a free option). - Recovery for lenders therefore depends entirely on (a) whether CRV rallies enough to push borrowers back above water, (b) voluntary repayments, and (c) any post-wind-down cleanup the
DAO decides to fund. (a) and (b) are passive; only (c) is actionable.
On (c), I’d like to float a question to LlamaRisk and the broader community: would a revenue-linked cleanup, sized and scoped to avoid bailout dynamics, be in scope for a follow-up vote?
Concretely, something like:
- A fixed allocation (e.g. 5-10%) of crvUSD revenue for N months, routed to a purpose-built repayment contract.
- Capped at a specific USD figure (~$100K range feels proportionate to the residual gap).
- Targeted narrowly at the underwater addresses already identified in LlamaRisk’s Oct 2025 temp-check.
- Auto-terminating once the cap or duration is reached — no open-ended commitment.
The framing that seems to meet Michwill’s stated “salvaging should not be guaranteed… done in a way to NOT set up a precedent” bar (Oct 24 comment in the Temp Check thread): this isn’t treasury-funded, isn’t precedent-setting for live markets, and only activates after the market is formally wound down.
It treats cleanup as a discretionary, bounded, post-mortem action — not a guarantee
I also have some on-chain data that might help frame sizing — per-band recovery curves vs. CRV price, borrower distribution, liquidator activity since the freeze — happy to share or write up a formal proposal draft if there’s appetite. Also genuinely interested to hear LlamaRisk’s view on whether a mechanism like this is worth pursuing or whether the pure run-off path is preferred.