{"id":14295,"date":"2024-06-13T10:35:22","date_gmt":"2024-06-13T07:35:22","guid":{"rendered":"https:\/\/forklog.com\/en\/curve-finance-founder-faces-potential-liquidation-of-140-million-in-crv-holdings\/"},"modified":"2024-06-13T10:35:22","modified_gmt":"2024-06-13T07:35:22","slug":"curve-finance-founder-faces-potential-liquidation-of-140-million-in-crv-holdings","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/curve-finance-founder-faces-potential-liquidation-of-140-million-in-crv-holdings\/","title":{"rendered":"Curve Finance Founder Faces Potential Liquidation of $140 Million in CRV Holdings"},"content":{"rendered":"<p>Michael Egorov, the founder of Curve Finance, faces the risk of liquidation of positions worth approximately 140 million CRV due to a significant drop in the native token&#8217;s price, according to analysts at Arkham Intelligence.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">$140M CRV nearing Liquidation<\/p>\n<p>Curve founder Michael Egorov is currently borrowing $95.7M in stablecoins (mostly crvUSD) against $141M in CRV, across 5 accounts on 5 protocols.<\/p>\n<p>Based on current rates, Egorov is paying $60M annualized in order to keep his positions open on\u2026 <a href=\"https:\/\/t.co\/ipTlWLZOAx\">pic.twitter.com\/ipTlWLZOAx<\/a><\/p>\n<p>\u2014 Arkham (@ArkhamIntel) <a href=\"https:\/\/twitter.com\/ArkhamIntel\/status\/1800943110886723596?ref_src=twsrc%5Etfw\">June 12, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Lookonchain&#8217;s calculations, the entrepreneur has <a href=\"https:\/\/etherscan.io\/address\/0x7a16ff8270133f063aab6c9977183d9e72835428#tokentxns\">111.87 million CRV<\/a> ($33.87 million) as collateral for a loan and a debt of $20.6 million in various stablecoins across four platforms, including Inverse, UwU Lend, Fraxlend, and Llama Lend.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The <a href=\"https:\/\/twitter.com\/hashtag\/Curvefi?src=hash&#038;ref_src=twsrc%5Etfw\">#Curvefi<\/a> founder(Michale Egorov) is being liquidated!<\/p>\n<p>He currently has 111.87M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$CRV<\/a>($33.87M) in collateral and $20.6M in debt on 4 platforms.<a href=\"https:\/\/t.co\/WM1nW8JKwU\">https:\/\/t.co\/WM1nW8JKwU<\/a> <a href=\"https:\/\/t.co\/huwgetBXuS\">pic.twitter.com\/huwgetBXuS<\/a><\/p>\n<p>\u2014 Lookonchain (@lookonchain) <a href=\"https:\/\/twitter.com\/lookonchain\/status\/1801087310819443146?ref_src=twsrc%5Etfw\">June 13, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Experts at Arkham Intelligence noted that Egorov&#8217;s $50 million loans in crvUSD on the Llama Lend lending platform currently cost him approximately 120% annually ($60 million).<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;There is almost no crvUSD left to borrow against CRV on Llama Lend. Egorov&#8217;s three accounts already make up over 90% of the borrowed crvUSD on the protocol. If the price of CRV drops by about 10%, these positions may start to liquidate,&#8221; the researchers wrote.<\/p>\n<\/blockquote>\n<p>According to <a href=\"https:\/\/parsec.fi\/dashboard\">Parsec<\/a>, on the morning of June 13, collateral positions in CRV worth ~$22.6 million were liquidated within four hours, with about $15 million liquidated within an hour.<\/p>\n<p>Immediately after, a user with the address sifuvision.eth <a href=\"https:\/\/etherscan.io\/address\/0x31d3243cfb54b34fc9c73e1cb1137124bd6b13e1\">purchased<\/a> 1.37 million CRV for 300,000 USDT, writes Lookonchain. He is currently shorting the asset, with a current debt in the UwU Lend DeFi protocol of 15 million CRV ($4.04 million).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">sifuvision.eth spent 300K <a href=\"https:\/\/twitter.com\/search?q=%24USDT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDT<\/a> to buy 1.37M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$CRV<\/a> at a low price of $0.2184 after CRV was liquidated in large quantities.<\/p>\n<p>Sifu is short <a href=\"https:\/\/twitter.com\/search?q=%24CRV&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$CRV<\/a> and currently has a debt of 15M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$CRV<\/a>($4.04M) on# UwULend.<\/p>\n<p>Before <a href=\"https:\/\/twitter.com\/search?q=%24CRV&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$CRV<\/a> was liquidated today, Sifu withdrew 6M <a href=\"https:\/\/twitter.com\/search?q=%24crvUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$crvUSD<\/a> from Curve\u2026 <a href=\"https:\/\/t.co\/31VlxLvW2S\">pic.twitter.com\/31VlxLvW2S<\/a><\/p>\n<p>\u2014 Lookonchain (@lookonchain) <a href=\"https:\/\/twitter.com\/lookonchain\/status\/1801125557809348713?ref_src=twsrc%5Etfw\">June 13, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Additionally, before the liquidation, this trader withdrew 6 million crvUSD from Llama Lend, causing Michael Egorov&#8217;s loan rates to rise.<\/p>\n<p>According to <a href=\"https:\/\/debank.com\/profile\/0x7a16ff8270133f063aab6c9977183d9e72835428\/history?token=0x865377367054516e17014ccded1e7d814edc9ce4_DOLA_eth\">DeBank<\/a>, to mitigate further risks, the entrepreneur has begun repaying the borrowed stablecoin DOLA.<\/p>\n<p>Recently, the founder of Curve Finance praised the &#8220;soft&#8221; liquidation mechanism on the Llama Lend platform, which allowed the recently hacked UwU Lend to close the hacker&#8217;s positions.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Was not planned, but fascinating how soft liquidations work on <a href=\"https:\/\/t.co\/bdUCarOsuM\">https:\/\/t.co\/bdUCarOsuM<\/a>. There are docs at <a href=\"https:\/\/t.co\/zQjPsRK8lQ\">https:\/\/t.co\/zQjPsRK8lQ<\/a> (same as for crvUSD).<\/p>\n<p>The system showed a fantastic performance. This gave time for liquidators to prepare funds and OTC-liquidate the hacker&#8217;s\u2026 <a href=\"https:\/\/t.co\/4nG8BIEush\">https:\/\/t.co\/4nG8BIEush<\/a><\/p>\n<p>\u2014 Michael Egorov (@newmichwill) <a href=\"https:\/\/twitter.com\/newmichwill\/status\/1800971391015043503?ref_src=twsrc%5Etfw\">June 12, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The system showed a fantastic performance. This gave liquidators time to prepare funds and close the hacker&#8217;s OTC position. As a result, there are no hacker funds or bad debts left in the system, everything works well,&#8221; Egorov wrote in a tweet.<\/p>\n<\/blockquote>\n<p>According to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/curve-dao-token\">CoinGecko<\/a>, at the time of writing, the price of CRV continues to fall, losing 27.5% in a day. The token is trading at $0.261.<\/p>\n<p>Back in April, a price drop in Curve <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-lending-protocol-liquidations-surpass-127-million\">threatened Michael Egorov&#8217;s loan liquidation<\/a>, but he managed to avoid a negative outcome then. The entrepreneur stated his intention to reduce his risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michael Egorov, the founder of Curve Finance, faces the risk of liquidation of positions worth approximately 140 million CRV due to a significant drop in the native token&#8217;s price, according to analysts at Arkham Intelligence. $140M CRV nearing Liquidation Curve founder Michael Egorov is currently borrowing $95.7M in stablecoins (mostly crvUSD) against $141M in CRV, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1426],"class_list":["post-14295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-curve-crv"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=14295"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/14294"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=14295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=14295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=14295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}