Curve Finance founder raises Aave deposit to $187 million

A wallet tagged as belonging to Curve Finance founder Michael Egorov transferred 38 million CRV tokens worth $24 million to the Aave protocol to reduce liquidation risk, Lookonchain analysts noted.

The founder of https://t.co/KJyxZS1wiW deposited 38M $CRV ($24.5M) into #Aave due to a 16% drop in $CRV price, increasing the health rate to 1.52.

He has deposited a total of 290M $CRV ($187M) into #Aave and borrowed $71M stablecoins.https://t.co/WM1nW8JKwU pic.twitter.com/MGvMDmSv5S

— Lookonchain (@lookonchain) June 10, 2023

The transaction followed a 16% drop in CRV price. The deposited amount increased the collateral health factor to 1.52. Automatic liquidation occurs when the health factor reaches one.

Egorov’s total deposit on Aave amounts to 290 million CRV ($187 million). The sum represents about 34% of the Curve token’s circulating supply (CoinGecko).

Against this collateral, the entrepreneur borrowed $71 million on Aave in USDT and USDC stablecoins.

According to CoinGecko, CRV prices fell more than 22% over the last seven days, and the token’s price declined by 2.4% in the last 24 hours. The total cryptocurrency market capitalization did not change over this period.

Total value locked on the Aave protocol stands at $5.1 billion (DeFi Llama). Curve Finance’s TVL stands at $3.94 billion.

Earlier reports indicated that Michael Egorov and his wife Anna purchased two villas worth about $40m in Melbourne.