Hello and thx @Llamaxyz for this proposal.
Considering the size of the excess debt, I also agree that mobilizing the Aave DAO treasury is a more straightforward solution. At the current CRV price, the protocol will recover that budget in roughly a bit more than a month.
For the assets mobilized to buy CRV, I would suggest a mix of long-tail assets and stablecoins such as USDC.
Aave has treasury contracts with large funds outside of ETH L1 but the ETH treasury has largely enough to cover excess debt so seems more efficient to concentrate everything on the ETH contract.
for the process of actually buying the CRV, I think a bonding curve with a small market premium of CRV market price to attract MM is the most efficient path. Imho, this premium doesn’t need to be large to work a 50-100 bps (higher for long tail assets, lower for stablecoins) might be considered attractive enough.