Historical bad-debt events
crvUSD (Curve Stablecoin)'s assessment for RD-F-067 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
ONE confirmed bad-debt event attributable to Curve infrastructure: June 2024 LlamaLend CRV market accrued ~$10M bad debt during Egorov liquidation cascade triggered by 28-30% CRV price drop. The bad debt was fully repaid by Michael Egorov within days (93% within hours; 100% confirmed on-chain). The crvUSD CDP markets (WETH, wstETH, WBTC, sfrxETH, tBTC) did NOT accrue bad debt in this event. Attribution note: LlamaLend is a separate product from crvUSD CDP but shares crvUSD as denomination token and Curve infrastructure. The June 2024 crvUSD upward depeg also caused inadvertent liquidations in sUSDe market — user losses via depeg mechanism, not direct CDP insolvency. crvUSD CDP itself has zero documented bad debt events as of 2026-05-16.
Sources #
- URLcrvUSD Upward Depeg (June 12, 2024) Incident Report — LlamaRiskLlamaRisk incident report — crvUSD upward depeg June 12 2024retrieved 2026-05-16
- Curve Finance Founder Repays 93% of $10M Debt Amid Market TurmoilYahoo Finance — Curve Finance Founder Repays 93% of $10Mretrieved 2026-05-16
Methodology #
Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.
See the full factor methodology and distribution across all protocols →