Michael Egorov, the founder of Curve Finance, has suffered a significant liquidation on his on-chain loans. This follows the partial liquidation of his position earlier.
Recent Developments in Egorov’s Liquidation
Per data from Lookonchain, Egorov was neck deep in depth of 111.87 million CRV, an equivalent of $33.87 million. This is coupled with $20.6 million in debt on four different DeFi platforms.
Notably, these debts were accumulated over time through borrowings of a variety of stablecoins from these DeFi platforms. Egorov used CRV tokens as collateral to borrow from UwuLend, Fraxlend, Inverse, and Curve’s LlamaLend.
The #Curvefi founder(Michale Egorov) is being liquidated!
He currently has 111.87M $CRV($33.87M) in collateral and $20.6M in debt on 4 platforms.https://t.co/WM1nW8JKwU pic.twitter.com/huwgetBXuS
— Lookonchain (@lookonchain) June 13, 2024
Egorov’s exposure started with Inverse but then, measures were set in to diminish the risk. Currently, the health rate of Inverse stands at 1.07, whereas liquidation will get triggered at 1.0. According to on-chain data, Egorov has commenced repayment of borrowed stablecoin DOLA.
Meanwhile, there was the liquidation of USDT and DAI stablecoins on UwuLend to the tune of $5 million, reducing the health rate on that to 1.08.
According to Lookonchain, the account Egorov’s linked account sifuvision.eth spent 300,000 USDT to purchase 1.37 million CRV at the low price of $0.2184 after CRV was heavily liquidated. Sifu is currently shorting CRV, holding a debt of 15 million CRV (approximately $4.04 million) on the UwuLend platform.
Impact of CRV Liquidation
Notably, prior to today’s CRV liquidation, Sifu withdrew 6 million CRV USD from Curve LlamaLend, which led to an increase in Michael Egorov’s borrowing rate. This sequence of events has intensified the financial pressure on the Curve Finance founder, pushing him closer to a major liquidation scenario.
The potential liquidation of Curve Finance brings to mind the FTX liquidation episode that culminated in the imprisonment of Sam Bankman-Fried. Although the scenarios are different, a major twist that might impact investors this time also.
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