Curve Finance, a decentralized finance (DeFi) platform, is proposing a 10% burn of its CRV token to stabilize the market after a recent liquidation crisis caused prices to plummet by 30%.

The proposal, put forth by Curve Finance's founder Michael Egorov, aims to prevent further price drops and maintain market confidence. Egorov has suggested that burning 10% of the total CRV supply will help control the token's price and minimize the impact on users.

The liquidation crisis was triggered by the forced liquidation of large loans, which resulted in a drastic drop in the value of the CRV token. The token's price fell from $0.35 to a low of $0.23, causing forced liquidations on several DeFi protocols. The situation generated about $10 million in bad debt and impacted the CRV market on lend.

Egorov has taken steps to address the situation, including paying off 93% of his debt and intending to pay off the rest soon. He hopes that these steps will help avoid further harm to users impacted by the situation. To encourage community support, active voters on the burn proposal will be provided with a 3-month APY booster on all platform deposits.

The proposal has been met with mixed reactions, with some supporting the move to stabilize the market and others expressing concerns about the potential impact on the token's value. The Curve DAO Token (CRV) price has yet to recover, with the price exchanging hands at $0.2932, a 20.30% decline.