On May 1, the Curve team announced a voluntary recovery path based on an on-chain market for the CRV-long Llamalend market affected by the market crash in October 2025. The approach involves creating a dedicated liquidity pool between the stablecoin crvUSD and the token cvcrvUSD, which represents creditor claims, using Curve's existing infrastructure. This allows affected users to exchange their claims for liquid crvUSD at market prices, rather than passively waiting for a single recovery outcome. The design offers users three options: sell their claims for immediate exit, hold their claims and wait for subsequent recovery, or provide liquidity to earn trading fees and potential CRV incentives, with an understanding of the associated risks. This does not eliminate losses or guarantee repayment, but transforms claims into tradable on-chain assets, allowing the market to price recovery expectations. The model indicates that as the price of CRV rises, the overall repayment capacity for remaining loss positions will gradually improve—starting to partially cover bad debts when CRV reaches approximately $0.957, and potentially achieving full repayment around $1.242. If CRV incentives are added to the pool in the future, veCRV voters can further enhance liquidity and improve exit conditions by allocating token emissions. Curve has strengthened the interface to more clearly display market repayment capacity and bad debt information.