Summary
This proposal requests that the Curve DAO deploy and vote in a donation (fundraising) gauge that directs CRV emissions, up to a fixed cap of 5,000,000 CRV, to a designated receiver multisig at 0xF90C888E3bB5e9fc90418e72cD2e2bcCFE358628.
The receiver is a multisig jointly controlled by Inverse and Curve stakeholders, established to administer remediation for the borrowers liquidated in the sDOLA-long2 LlamaLend market on March 2, 2026. This follows the remediation planning previously laid out in Proposal to Recompensate Borrowers Liquidated in the sDOLA-long2 LlamaLend Market.
Background
On March 2, 2026, a flash-loan attack manipulated the sDOLA oracle in the sDOLA/crvUSD LlamaLend market, forcing all positions into soft-liquidation and then hard-liquidating 27 active borrowers. Aggregate borrower equity lost totaled ≈ 822,475 crvUSD. Lenders were unaffected, and DOLA/sDOLA were not themselves exploited. The full analysis is in the sDOLA-long2 Post-mortem.
Inverse and Curve stakeholders have negotiated on the losses methodology to reduce headline losses to ~742,441 crvUSD and have agreed to jointly remediate these borrower losses. This proposal provides the funding mechanism for that plan.
How a Donation Gauge Works
A donation gauge (also referred to as a fundraising gauge or veFunder gauge) is a custom gauge that directs CRV emissions entirely to a single receiver address, up to a maximum emissions cap, rather than to liquidity providers.
Once the gauge is voted into the GaugeController and veCRV holders allocate gauge weight to it, it accrues CRV at the standard inflation rate scaled by its relative weight. The receiver mints accrued CRV through the CRV Minter and withdraws it to the receiver address. Key properties of the contract:
- Hard cap. Accrual stops permanently once the receiver’s cumulative emissions reach
max_emissions; no further CRV can be minted through the gauge beyond the cap. - Kill switch. The gauge admin can call
set_killed(True)to halt emissions at any time, regardless of whether the cap has been reached, preventing any additional CRV minting.
Reference implementation: FundraisingGaugeV1.vy (gauge factory: vefunder/crvfunder).
Precedent: Vyper Funding (2022)
This mechanism was first used by the DAO in 2022 via veFunder, when a fundraising gauge was deployed and voted in to direct CRV emissions, capped at 2M CRV, to the Vyper development effort. It established that the DAO can route emissions to an arbitrary receiver for a DAO-approved purpose, subject to gauge weight votes, without drawing down the Community Fund. See Proposal to fund Vyper development via a new Fundraising Gauge.
Specification
- Deploy a
FundraisingGaugeV1instance via the gauge factory with:
_receiver=0xF90C888E3bB5e9fc90418e72cD2e2bcCFE358628_max_emissions=5,000,000 CRV
- Add the gauge to the GaugeController so that veCRV holders can allocate gauge weight to it.
On the 5M CRV cap
At current CRV prices, a 5M CRV cap is approximately sufficient to repay the borrower losses in full, with headroom to absorb CRV price variation over the emission period. Where available, L2 admin fees may additionally supplement the remediation, reducing the CRV ultimately required. Because emissions are capped and the gauge can be killed, the DAO retains full control: once losses are remediated, the gauge can be killed to prevent any further minting, and veCRV holders can adjust or remove gauge weight at any time.
Recipient Multisig
The receiver is a multisig deployed specifically for this purpose at 0xF90C888E3bB5e9fc90418e72cD2e2bcCFE358628, jointly controlled by Inverse and Curve stakeholders. Signing thresholds are configured such that Inverse signers alone do not constitute a quorum, ensuring that no single party can unilaterally move funds.
The multisig is responsible for defining and executing the methodology and process for distributing remediation to the affected borrowers.