CRV Crypto News: Curve Finance Founder Michael Egorov Faces Increased Liquidation Risks Amid CRV Token Plunge
CRV Crypto News – Michael Egorov, the founder of Curve Finance, is facing heightened liquidation risk regarding his on-chain loans, following partial liquidations of his positions earlier on Thursday.
The value of Curve DAO (CRV), the token associated with the decentralized exchange, has plummeted by over 25% in the last 24 hours, currently trading at $0.262, as reported by The Block.
“Egorov presently holds 111.87 million CRV ($33.87 million) as collateral and $20.6 million in debt across four platforms,” Lookonchain reported.
Egorov has borrowed various stablecoins from DeFi platforms such as Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend, using CRV tokens as collateral.
Earlier today, Egorov began facing liquidations on Inverse but has since taken steps to mitigate further risk.
His position on Inverse currently holds a health rate of 1.07, with liquidation typically triggered when the rate hits one. On-chain data indicates that Egorov has started repaying the borrowed stablecoin DOLA.
Around 3 a.m. Eastern time on Thursday, Egorov’s loan positions for USDT and DAI stablecoins on UwU Lend faced additional liquidations totaling over $5 million, according to DeBank. This action raised his health rate on UwU to 1.08.
Blockchain intelligence firm Arkham had forecasted earlier on Wednesday that Egorov’s CRV positions worth $140 million were nearing liquidation, highlighting that the Curve founder is paying 120% in annualized rates to maintain his positions on LlamaLend.
The intelligence firm predicted that a roughly 10% drop in CRV’s value would trigger the liquidation of Egorov’s positions.
In August 2023, Egorov sold 106 million CRV for $46 million in deals aimed at reducing potential liquidation risks associated with his outstanding debt across various DeFi platforms, including Aave.
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