The recent market downturn has had far-reaching consequences, with the price of CRV, Curve Finance’s native token, plunging to $0.42. This drop has significant implications for Curve founder Michael Egorov’s lending position, which has again crossed into precarious territory. The past two days witnessed a sharp decline in the market, dragging the price of CRV down to $0.42. As a result, Michael Egorov’s lending position, which relies on the value of CRV as collateral, finds itself in a vulnerable position again.

随着这两天市场下跌，CRV 价格也跌到了 $0.42。Curve 创始人 Michael Egorov 的借贷仓位也又进入红线了。Michael 目前通过 5 个地址在 6 个借贷平台共计抵押了 3.71 亿枚 CRV ($156M) 借出 $9254 万的稳定币。因为 CRV 价格下跌，Michael… pic.twitter.com/RxiT6rD7Us

— 余烬 (@EmberCN) April 14, 2024

Founder’s Lending Position

Michael Egorov holds five addresses with a combined pledge of 371 million CRV, equivalent to $156 million. These assets are spread across six lending platforms, where he has lent out a substantial $92.54 million in stablecoins. However, the recent drop in CRV prices has triggered concerns as multiple lending positions hover around a precarious health rate of approximately 1.1.

This isn’t the first time Michael has faced such a dilemma. In August of last year, amidst a similar market downturn, he resorted to selling 159.4 million CRV in an over-the-counter (OTC) transaction. This move, executed for $0.4 per token, fetched him 63.76 million U stablecoins, which were promptly used to repay loans and stave off liquidation.

With his borrowing position again in the red, Michael ponders his next move. Should he opt for another round of OTC sales to repay loans and mitigate risks, or consider transferring previously borrowed stablecoins to address the debt? Alternatively, he may hold steady, betting on a market rebound to salvage the situation.