CDS Crypto News Curve Finance founder deposits $24M in CRV to Aave
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Curve Finance founder deposits $24M in CRV to Aave

A wallet tagged as belonging to Michael Egorov deposited 38 million CRV tokens worth $24 million into Aave to mitigate liquidation risk.

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Curve Finance founder deposits $24M in CRV to Aave

Curve Finance Founder Michael Egorov’s wallet deposited 38 million Curve DAO tokens, amounting to approximately $24 million, into the decentralized lending platform Aave.

Curve Finance founder deposits $24M in CRV to Aave

Curve Finance founder deposits $24M in CRV to Aave

During the weekend, a wallet associated with Michael Egorov, the founder of Curve Finance, executed a noteworthy maneuver by depositing 38 million Curve DAO tokens, equivalent to $24 million, into the decentralized lending platform Aave.

This action, observed by on-chain analyst Lookonchain, was undertaken by Egorov to increase his collateral and mitigate the risk of potential liquidation. The scale of the collateral he controls is particularly remarkable. He secured his Aave loan with an astounding 277 million CRV tokens, representing 32% of the total circulating supply of CRV.

According to data from DeBank, Egorov’s initial loan from Aave was substantial, amounting to over $64 million in stablecoins. To secure this loan, he provided nearly one-third of the total circulating supply of CRV tokens, highlighting the significant influence of large token holders in the DeFi ecosystem.

Curve Finance founder deposits $24M in CRV to Aave

Lookonchain reported that Egorov’s recent deposit improved the health rating of his position from 1.3 to 1.5. This development is crucial, as a health rating of one usually triggers liquidation. Currently, Egorov’s position has a safer health rating of 1.7.

Considering the substantial amount of CRV collateral held by Egorov, a mass liquidation could lead to significant market disruption by causing a sharp decline in the token’s price.

Automated liquidations are an inherent feature of the DeFi landscape and can trigger a cascade effect, resulting in a temporary drop in the price of the collateralized asset until the market stabilizes.

To access more crypto news: cryptodataspace.com

Crypto Data Space
Sources:TheBlock
Written by
Aziz KARTAL

Aziz Kartal is 21 years old. He is a student at the Gazi University, Department of Electrical and Electronical Engineering. He works as content writer, researcher and social media manager. He generally research about Web3, Blockchain Security and Cybersecurity.

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