CRV plummeted, and the debt crisis faced by the founders who were liquidated was particularly prominent. The Arkham report showed that Egorov borrowed $95.7 million in stablecoins (mainly crvUSD) on 5 accounts in 5 protocols, using $140 million in CRV as collateral.

Among them, the borrowing on the Llamalend platform was as high as $50 million, accounting for more than 90% of the total crvUSD lent on the protocol. As the price of CRV fell by more than 10%, multiple borrowing positions approached the liquidation threshold.

Although Egorov would cover his positions to avoid liquidation in the past, he seemed to have no intention of taking action this time. Ember monitoring showed that some of its lending positions on the Inverse platform had been liquidated.

In addition, monitoring showed that Egorov held 111.87 million CRV (about $33.87 million) as collateral on 4 platforms and owed $20.6 million in debt. Two months ago, when the price of CRV fell to $0.42, Egorov's lending position had reached the liquidation threshold, but he was not liquidated at the time and no remedial measures were taken.

Egorov's debts are distributed across multiple lending platforms, especially the Silo protocol. Silo became Egorov's main source of lending after the CRV attack, accounting for 30% of his total debt. Silo's manual liquidation mechanism and the lag in Chainlink oracle price updates made the liquidation process more complicated.

On April 14, the price of CRV fell again to $0.4, and multiple lending positions entered a dangerous state. Although the health factor was close to or reached the liquidation standard, the liquidation was not triggered immediately because Silo used a weighted average algorithm. In addition, the "automatic cash-out" mechanism of the Llamalend platform also prevented liquidation to a certain extent. The slippage problem of CRV prices under extreme volatility makes it difficult for liquidators to operate immediately

Liquidators have already profited from this crisis. According to ai_9684xtpa monitoring, one of Michael's main liquidators liquidated 29.62 million CRV at an average price of $0.2549 in the past hour, and sold it on Binance at an average price of $0.2792, making a profit of $720,000. On the contrary, investors faced huge price losses, and lenders on Fraxlend were liquidated 10.58 million CRV ($3.3 million)

Overall, Michael Egorov's debt crisis had a significant impact on CRV prices and market liquidity, raising widespread doubts about his behavior and the stability of the lending platform