With the recent market weakness, the CRV token price has fallen to a low of $0.25.
The lending positions held by Michael Egorov, the founder of Curve Finance, are once again facing challenges, approaching the risk threshold.
So far, Michael has pledged a total of 371 million CRV (worth approximately $156 million) on six lending platforms through five different addresses, and has lent out stablecoins worth up to $92.54 million. Due to the decline in CRV prices, Michael's position health rate on multiple lending platforms has fallen to a warning line close to 1.1, which means that if the CRV price falls another 10% and no margin call or repayment is performed, the relevant positions will face liquidation risks.
Looking back to August last year, in order to avoid the liquidation crisis that may be caused by the decline in CRV prices, Michael sold 159.4 million CRV to 33 investors and institutions through over-the-counter (OTC) transactions in exchange for 63.76 million U stablecoins to repay part of the debt. The selling price at that time was $0.4 per coin.
Faced with the current decline in CRV prices and the tight lending position, Michael is faced with a difficult choice. Should he continue to sell CRV through OTC transactions to repay his debts? Or should he consider withdrawing some of the borrowed stablecoins to reduce debt pressure? Or should he choose to maintain the status quo and hope that the market will not decline further?
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