Home Ethereum Curve Finance Founder Sells 72 Million CRV, Brings Down CRV-Backed Debt By 21%

Curve Finance Founder Sells 72 Million CRV, Brings Down CRV-Backed Debt By 21%

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Curve Finance Founder Sells 72 Million CRV, Brings Down CRV-Backed Debt By 21%

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  • Curve Finance founder Michael Egorov has offloaded 72 million Curve Dao Tokens since final week’s exploits. 
  • Egorov has managed to cut back his $100 million debt, collateralized with 427 million CRV, by 21%. 
  • Earlier at this time Curve’s crvUSD stablecoin briefly misplaced its peg to the US Greenback and tanked 0.35%.

Michael Egorov, the person behind the automated market maker Curve Finance, has offloaded roughly 72 million Curve DAO tokens (CRV) in over-the-counter (OTC) trades since final week’s exploits on the DeFi protocol. Egorov’s current gross sales got here as he tried to attenuate his CRV-backed money owed of over $100 million, which danger getting liquidated with CRV’s tanking worth. 

Curve Finance Founder Nonetheless Owes Over $80 Million

In a abstract of Michael Egorov’s current OTC gross sales, on-chain analytics agency Lookonchain reported that the Curve Finance founder had bought CRV to fifteen totally different establishments and traders at a mean worth of $0.4, elevating over $28 million within the course of. 

Final week’s exploit on Curve, which drained over $47 million from the DeFi protocol, put a highlight on Egorov’s hefty loans totaling $100 million that was backed by greater than 427 million CRV, which accounted for 47% of the token’s whole circulating provide. 

The most important debt was on Aave, the place the Curve founder had posted a collateral of 305 million CRV for a mortgage of 63.2 million USDT. This debt is eligible for liquidation as quickly as CRV’s worth sinks to $0.37, on condition that it has a liquidation threshold of 55%. The riskiest debt was on Frax Finance, the place Egorove had pledged 59 million CRV for 15.8 million FRAX. Fraxlend’s time-weighted variable rate of interest made it in order that the rate of interest would double each 12 hours if the credit score utilization reached 100%. 

To this point, Michael Egorov has repaid 12 million USDT to Aave and 6.6 million FRAX to Frax Finance, which left an excellent debt of 51 million USDT and 9.1 million FRAX, respectively. The Curve Finance founder nonetheless owes 12 million MIM on Abracadabra, 9.4 million DOLA on Inverse, 740,000 XAI on Silo, decreasing his whole debt obligations by 21%.

Earlier at this time, Curve’s crvUSD stablecoin misplaced its peg to the US Greenback and sank as a lot as 0.35% amid uncertainty surrounding the DeFi protocol. Because the exploit, a number of gamers within the crypto trade, together with Justin Solar and Huobi, have stepped in to stop a dramatic decline in CRV’s worth as a way to keep away from a DeFi disaster. 



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