TokenLogic's Sept. 11 proposal would give Aave V4 lenders a bad-debt backstop. The initial coverage would apply only to Core WETH, Core USDC and Core USDT on Ethereum. TokenLogic sized the proposed targets for six to eight weeks of expected loan growth. The DAO would absorb initial losses before volunteer underwriters.
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Aave V4 proposal would put DAO funds first for lending losses
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