According to recent findings, the founder of Curve Finance, Michael Egorov faces a looming crisis pertaining to on-chain debts to numerous lending platforms which currently stand at around a whopping $80 million. These figures stare at him, despite his fervent attempts to mobilise funds this week with the aim of averting a liquidation calamity.
How has he been attempting this seemingly hazardous task, you may ask? Egorov has been busily offloading, pulling a staggering $28.8 million in the process. He achieved this by selling 72 million CRV tokens at 40 cents each through over-the-counter (OTC) sales, as demonstrated by on-chain data. The silver lining of this story rests in the fact that these acquired funds have partially satiated some of his borrows with Aave, Abracadabra, FraxLend and Inverse Finance; at least as per data unveiled by the blockchain analytics firm, DeBank.
Proceeding from here though, things could start to look relatively grim if the CRV price plummets down to 36.8 cents, specifically, in relation to Egorov’s liability to Aave where he is currently held accountable for a $50 million loan. DeFi risk management enterprise, Gauntlet, reported in its forums that Aave could find itself in uncharted and treacherous waters, being impelled to sell Egorov’s CRV collateral in a market plagued with low liquidity. It remains without saying that this is a risky endeavour.
However, the story for CRV itself seems to paint a slightly less unsettling picture. The token has showcased steady behaviour around 58 cents in the past day, in spite of experiencing more than a 20% plunge since its exploitation a few days ago, according to CoinDesk Indices data.
Although CoinDesk has calculated Egorov’s total raised funds to be $28.8 million, figures might skew higher given that this does not cover deals that have possibly been carried out off-chain. Hence, the narrative on Egorov’s stride through a precarious path, and the fate of Curve Finance, remains intriguingly open-ended.
Source: Coindesk
