Key Points:
- Michael Egorov, founder of Curve Finance, settles Aave loan, reducing his total debt to $42.7 million.
- Egorov’s debt woes stemmed from a significant hack within the Curve Finance ecosystem, affecting CRV token value.
- Details reveal how Egorov managed his debts across multiple DeFi protocols, securing CRV tokens as collateral.
Michael Egorov, the founder of Curve Finance, has successfully resolved his outstanding loan on the Aave Protocol, reducing his overall debt to $42.7 million. Egorov’s involvement in the decentralized finance (DeFi) space came into the spotlight on August 1, when a hacking incident within the Curve Finance ecosystem resulted in the illicit withdrawal of assets valued at $73.5 million from various liquidity pools.
Predictably, this exploit triggered a substantial decline in the value of CRV, the governance token of Curve Finance, which suffered a 24% depreciation in a single day, as per data from CoinMarketCap. Consequently, Michael Egorov’s multiple debt positions became a focal point of concern.
According to findings by the blockchain research firm Delphi Digital, it was revealed that the founder of Curve Finance held debts totaling approximately $100 million across several DeFi protocols. Notably, these debts were secured by 427.5 million CRV tokens, representing 47% of the total CRV circulating supply.
As a result, the diminishing CRV price posed a potential risk of liquidation, which could have had severe repercussions for the entire DeFi ecosystem.
Michael Egorov Resolves Debt Profile on Aave Protocol
In a recent report published by the on-chain analytics platform Lookonchain, it has been confirmed that Michael Egorov has successfully cleared his debt on the Aave protocol.
According to the report, the Curve Founder first deposited 68 million CRV tokens, valued at $35.5 million, into the DeFi lending protocol Silo. Subsequently, Egorov borrowed $10.77 million worth of the stablecoin crvUSD. Following this, he exchanged the crvUSD tokens for USDT and utilized these funds to settle his debt on the Aave Protocol.
Michael Egorov deposited 68M $CRV ($35.5M) to #Silo and borrowed 10.77M $crvUSD in the past 2 days.
Then swapped $crvUSD for $USDT and repaid the all debt on #Aave.
He currently has 253.67M $CRV($132.52M) in collateral and $42.7M in debt on 4 platforms.https://t.co/stkFvDrlnv pic.twitter.com/oBQ4yiT9Xs
— Lookonchain (@lookonchain) September 27, 2023
Egorov’s Current Debt Portfolio
Based on additional data from Lookonchain, Michael Egorov’s outstanding debt now stands at $42.7 million, distributed across four lending protocols: Fraxlend, Silo, Inverse Finance, and Cream Finance.
Specifically, Egorov’s most substantial debt is with Silo, where he owes 17.14 million crvUSD, backed by 105.8 million CRV tokens, amounting to $55.3 million. On Fraxlend, Egorov carries a debt of 13.08 million FRAX, secured by 68.7 million CRV tokens, valued at $35.94 million.
In the case of Inverse Finance, Michael Egorov has an outstanding debt of 10 million DOLA, collateralized by 66.18 million CRV tokens, worth $34.5 million. The smallest debt within Egorov’s portfolio is found in Cream Finance, comprising 2.02 million USDT and 506,000 USDC, backed by 13 million CRV tokens, valued at $6.8 million.
In total, Egorov’s $42.7 million debt is supported by 253.67 million CRV tokens, amounting to $132.53 million, representing 28.87% of the entire CRV circulating supply.
At the time of writing, CRV is trading at $0.516, reflecting a 2.99% increase over the past day. However, the token’s daily trading volume has declined by 0.73%, totaling $33.85 million. CRV currently ranks as the 70th largest cryptocurrency, boasting a market capitalization of $452.87 million.
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