Curve founder Michael Egorov proposed recovering bad debts in lending protocols by converting damaged positions into tradable investment products. The proposal is being piloted on Curve's own CRV-long LlamaLend market, which generated approximately $700,000 in bad debts in October 2025. Michael Egorov has established a Curve Stableswap pool with approximately 71% solvency, allowing trading of damaged vault tokens. Traders can buy at a discount, liquidity providers can earn fees, and the DAO can accumulate damaged tokens through management fees. Currently, community feedback on this proposal is mixed, with some users questioning whether the lack of immediate returns on damaged positions will attract buyers.