Discover the crypto universe in depth

Curve Pioneer Michael Egorov Resolves Debt on Aave

The pioneer of Curve, Michael Egorov, has taken proactive steps to resolve his outstanding debt on the DeFi lending platform, Aave. Using information from the blockchain analytics agency Lookonchain, we can see that Egorov injected 68 million CRV tokens, amounting to an impressive $35 million, to neutralize all of his financial debt on Aave. In a further effort to eliminate all debts, Egorov swiftly exchanged 10.77 million crvUSD for the stablecoin USDT.

Egorov’s Trajectory: Near a Massive Liquidation

Just a few months ago, in August, Egorov found himself in a precarious situation after a widespread market crash that threatened his CRV positions across DeFi lenders, putting him dangerously close to liquidation. In a quick response to this volatile situation, he obtained $42 million through OTC transactions of CRV tokens, allowing him to repay a massive $80 million of on-chain debt. It is crucial to understand that if liquidation had occurred, Aave would have been forced to release the CRV, used as collateral, onto the open market. This action could have triggered a domino effect due to existing liquidity constraints. Currently, with the tables turned, Egorov holds an impressive 253.67 million CRV tokens ($132.52 million) as collateral, against a debt of $42 million spread across four DeFi lenders.

Related Posts