TLDR
- Over the last day, the CRV token slid significantly by almost 30%, now pivoting around the $0.26 mark.
- Michael Egorov, who spearheaded Curve Finance, found himself in hot water as his on-chain loans, backed by CRV tokens, faced liquidation threats.
- Egorov's been using over 111 million CRV tokens, valued at $33.87 million, as security, all while juggling $20.6 million in loan debt spread over four DeFi platforms: Inverse, UwU Lend, Fraxlend, and Curve's own LlamaLend.
- In an effort to stave off further financial collapse, Egorov's been actively settling his stablecoin borrowings, though UwU Lend witnessed additional sell-offs surpassing $5 million.
The DeFi sector is shaken up as Curve DAO token's value nosedives by nearly 30% within a day's span.
CRV's valuation spiral is closely tied to the liquidation forced on Curve Finance's founder, Michael Egorov, who had staked CRV tokens against his loans.
As tracked by Lookonchain and Arkham, Egorov is currently using 111.87 million CRV tokens, pegged at roughly $33.87 million, to secure $20.6 million in borrowings spread across four DeFi venues: Inverse, UwU Lend , Fraxlend, and Curve's LlamaLend. The tumbling CRV value keeps Egorov's loans poised for potential compulsory sales.
The #Curvefi The main man behind it all, Michael Egorov, is seeing his financial maneuvers come under intense scrutiny as market pressures mount!
He currently has 111.87M $CRV Boasting a collateral of $33.87 million and pursuing $20.6 million borrowed from four corners of the financial landscape. https://t.co/WM1nW8JKwU pic.twitter.com/huwgetBXuS
— Lookonchain (@lookonchain) June 13, 2024
Earlier this Thursday, Egorov's confrontation with Inverse posed a liquidation worry, prompting him to take preventive steps against further losses.
On-chain insights show that Curve's mastermind began repaying his borrowed stablecoins, aiming to patch up his loan standings. Yet, his debts for USDT and DAI on UwU Lend still saw over $5 million in forced liquidations.
These unfolding events cast doubt among investors on the direction of Curve Finance and its possible ripple effects across the DeFi domain.
CRV plays a crucial role as a trading asset and stabilizer across various DeFi trading pools, and such large-scale forced sales are starting to strain other systems.
In August 2023 , Egorov's sale of 106 million CRV tokens for $46 million was maneuvered to minimize risks linked to his outstanding DeFi debts, but the situation underlines his financial dilemmas.
