Curve DeFi protocol’s head faces $27 million liquidation of positions
The native token CRV has collapsed to an all-time low
![Curve DeFi protocol’s head faces $27 million liquidation of positions](https://storage.getblock.net/source/1/ihUv0ZpPkMQvO6pxlnxhz68O4FcQByTf.webp)
13.06.2024 - 14:12
67
2 min
0
What’s new? Michael Egorov, the founder of the Curve Finance DeFi protocol, has seen his leveraged position of 100 million CRV native tokens worth $27 million liquidated. That said, he still holds 29,35 million CRV on the lending platform, which is not currently at liquidation risk.
What else is known? Using CRV tokens as collateral, Egorov borrowed various stablecoins from the lending protocols Inverse, UwU Lend, Fraxlend, and LlamaLend.
Experts at the blockchain analytics platform Arkham Intelligence warned a day earlier that Egorov’s $140 million position in CRV could be liquidated if the token’s price falls by 10%. Over the past 24 hours, the CRV exchange rate has collapsed by 41% and hit an all-time low of $0,219.
Before the collapse, Egorov held $95,7 million in borrowed positions in stablecoins, mostly crvUSD, with a $141 million pledge in CRV tokens through five protocols.
He borrowed $50 million in cvrUSD through Llamalend with a 120% APR. This is because there was almost no crvUSD available to borrow against CRV collateral on Llamalend. Egorov’s 3 accounts accounted for over 90% of crvUSD loans in the protocol.
Last August, Egorov’s actions also significantly shook the market. Back then, a hacker attack on Curve led to a sharp decline in CRV, prompting several protocols to prohibit additional borrowings of the asset, citing the risk of contagion from Egorov’s actions.
Egorov has since sold 106 million CRV for $46 million in deals to mitigate potential liquidation risks associated with his outstanding debt on various DeFi platforms, including Aave.
Useful material?
Business
The company already owns more than 1% of the total supply of the first cryptocurrency
Jun 20, 2024
Trends
Jeremy Allaire emphasized the growing role of such assets as an alternative to unavailable banking services in many regions
Jun 20, 2024
Market
The analyst noted that ETH is beginning to outperform BTC in terms of yield
Jun 20, 2024
Technologies
The upgrade is scheduled to take place on June 20
Jun 18, 2024
Trends
The team of the former US president has not confirmed the news
Jun 18, 2024
Market
At the same time, the supply of other major assets on trading platforms continues to grow
Jun 13, 2024