Post Vyper Exploit - CRV Market Update and Recommendations

Over the past few days, the user has repaid ~20.75M USDT and has redeemed ~73.25M CRV bringing the account health to 2.11 at the time of this post.

We stay consistent with our recommendations to incrementally reduce LTs to wind down the CRV V2 ETH market, in addition to disabling borrows on V3 deployments.

We started a separate thread to discuss the deprecation of the CRV market on V2 Ethereum here.

Next Steps:

We have prepared two separate AIPs, which are currently under review and are planned to go live shortly:

  1. Disable CRV borrows on V3 Ethereum and Polygon.
  2. Reduce LT of CRV on V2 Ethereum by 6%. This is the same planned reduction that the community has previously voted on and was canceled during the CRV price downturn last week.
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