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CURVE FOUNDER FACES MAJOR CRV LIQUIDATION AFTER $95.7M STABLECOIN LOAN

#CurveFinance #Curve #CRV $CRV

Michael Egorov, founder of Curve Finance, recently faced substantial liquidations of his CRV holdings after borrowing $95.7 million in stablecoins. Despite this setback, Egorov remains dedicated to Curve’s future.

Commitment to Curve's Future
Egorov tweeted, "I am committed to building Curve more than ever, thanks to game-theoretical implications of veTokenomics (mostly have veCRV now).” He plans to focus on making Curve’s lending and borrowing products the safest in the industry, educating traders on orderly liquidations, and encouraging users to deposit crvUSD, Curve’s stablecoin.

Understanding VE Tokenomics
VE tokens, non-transferable assets issued for locking up governance power, allow holders to vote on new token emissions. This led to the "Curve Wars" in 2021, with DeFi protocols competing to direct CRV rewards to Curve liquidity pools.

Liquidation Events
On June 12, Arkham Intelligence warned Egorov was at risk of liquidation if CRV’s price dropped another 10%. By June 13, Lookonchain reported his positions entered liquidation after a 20% price drop. His positions were reduced to $33.9 million in CRV backing $20.6 million in loans. CRV’s price fell 36% over seven days but rebounded 14% after Egorov’s liquidation.

Market Reactions
Despite the liquidation, many believe Egorov wasn’t significantly harmed. Ethereum developer Eric Conner tweeted, "Michael did not get ‘rekt’ by being liquidated on his CRV... Selling it on market would have resulted in similar prices and a pissed community." Anthony Sassano, host of The Daily Gwei podcast, noted, "He just transferred the rektage to the community instead."

Financial Moves
Lookonchain revealed Egorov had "already cashed out and bought a mansion in 2023." On-chain records show he transferred $31 million in borrowed USDT to Bitfinex in April 2023. His wife purchased a $41 million mansion in Melbourne, alongside a home bought for $18.25 million the previous year.