Curve Finance Founder Faces Over 100 Million Tokens Liquidation as CRV Plummets

Michael Egorov, the founder of Curve Finance, is facing increased liquidation risk for his on-chain loans, following partial liquidations of his positions earlier on Thursday.

The value of Curve DAO, the token associated with the decentralized exchange, has plummeted over 27% in the last 24 hours, currently trading at $0.262, according to Trading View.

“Egorov currently holds 111.87 million CRV ($33.87 million) as collateral and has $20.6 million in debt across four platforms,” Lookonchain reported.

Egorov borrowed various stablecoins from DeFi platforms including Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend, using CRV tokens as collateral. Earlier today, Egorov began facing liquidations on Inverse but took steps to mitigate the risk.

The #Curvefi founder(Michale Egorov) is being liquidated!

He currently has 111.87M $CRV($33.87M) in collateral and $20.6M in debt on 4 platforms.https://t.co/WM1nW8JKwU pic.twitter.com/huwgetBXuS

— Lookonchain (@lookonchain) June 13, 2024

Egorov’s position on Inverse had a health rate of 1.07, where liquidation typically occurs when the rate drops to one. On-chain data shows Egorov started repaying the borrowed stablecoin DOLA. However, his loan on UwU Lend remains at risk.

Blockchain intelligence firm Arkham had warned on Wednesday that Egorov’s CRV positions worth $140 million were approaching liquidation, noting that the Curve founder is paying $60 million in annualized interest to maintain his positions on LlamaLend. Arkham predicted that a roughly 10% drop in CRV’s value would trigger liquidations of Egorov’s positions.

In August 2023, Egorov sold 106 million CRV for $46 million to reduce potential liquidation risks related to his outstanding debts on various DeFi platforms, including Aave.