Curve Finance Founder Michael Egorov Clears Aave Loans, Debt Drops to $42.7M
Summary:
Michael Egorov, founder of decentralized finance protocol Curve Finance, has repaid his loans on Aave, reducing his total debt across various DeFi platforms to $42.7 million. He achieved this by depositing 68 million CRV tokens (worth $35.5 million) into the Silo lending protocol, then borrowing 10.77 million in crvUSD. Afterward, he converted the crvUSD to USDT and cleared his Aave debt. His current collateral stands at 253.67 million CRV tokens (worth $132.52 million), and he still owes $42.7 million across platforms Silo, Fraxlend, Inverse, and Cream.
In recent developments, Michael Egorov, the brain behind Curve Finance, a decentralized finance (DeFi) protocol, managed to square off his debts on the Aave lending platform. This has brought down his outstanding debts to $42.7 million in various other DeFi protocols. Detailed data from the blockchain analytics firm, Lookonchain, shows that Egorov deposited 68 million CRV tokens, accounting for $35.5 million, into the Silo lending protocol. Subsequently, he borrowed 10.77 million in the CRV-pegged stablecoin, crvUSD, over the past 48 hours. Egorov then exchanged the borrowed crvUSD for Tether (USDT), effectively clearing his entire debt on Aave.
Presently, Lookonchain data indicates that the total value of Egorov's collateral, in the form of 253.67 million CRV tokens, is $132.52 million. However, he still owes a cumulative debt of $42.7 million across four DeFi platforms, namely Silo, Fraxlend, Inverse, and Cream.
In the past, on August 1st, Egorov was in the news for a hefty debt of $100 million in the DeFi sector. This stirred concerns about the risk of potential liquidation, especially in the face of dropping Curve DAO (CRV) token prices, which could potentially trigger a DeFi meltdown. Predicting these risks, Egorov had been proactive in making necessary arrangements to alleviate his deft and utilization ratio.
It's worth noting that at that time, the price of the CRV tokens experienced a significant plummet, owing to a $47 million hack due to the protocol's reentrancy vulnerability. On July 30th, a flaw in the Vyper programming language allowed the exploitation of several stable pools on Curve Finance, resulting in a substantial security breach. Following this, the value of CRV tokens dropped from $0.73 on July 30th to $0.50 on August 1st.
Published At
9/27/2023 11:55:03 AM
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