Saturday, September 23, 2023

Curve Finance founder Michael Egorov’s on-chain debts to several lending platforms stand at roughly $80 million despite his frantic efforts this week to raise funds that could stave off a liquidation crisis.

Egorov raised at least $28.8 million by dumping 72 million CRV tokens at $0.40 cents a piece through over-the-counter (OTC) sales, according to on-chain data. That cash has helped him pay down some – but not all – of his borrows from Aave, Abracadabra, FraxLend and Inverse Finance, data from blockchain analytics firm DeBank shows.

On Aave, where Egorov is still on the hook for a roughly $50 million loan, things could get hairy if the price of CRV hits $0.368. DeFi risk management firm Gauntlet said in the forums that Aave would have to sell his CRV collateral into a market that has low liquidity – a risky move.

The price of CRV has remained steady around 58 cents in the past 24 hours, after dropping more than 20% since its exploit several days ago, per CoinDesk Indices.

CoinDesk calculated that Egorov has raised $28.8 million using blockchain data, but the true figure may be higher as it does not account for deals that may have occurred off-chain.

Edited by Danny Nelson.

#Curve #Founder #Owes #80M #Raising #30M #Days

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