Michael Egorov, the brainchild behind Curve DeFi network, recently achieved a milestone by fully settling his lingering debt with the renowned DeFi lending protocol, Aave. This accomplishment didn’t come easily, as a menacing cloud of liquidation loomed large due to a substantial dip in the value of CRV tokens, ignited by a severe network breach last month. This saga reflects Egorov’s financial prudence.
The Precipice of Liquidation
Following a significant network exploit, triggered by a programming error, several Curve stable pools operating on Vyper 0.2.15 were compromised. This mishap led to a sharp decline in CRV token values, plummeting to a mere $0.5 within a few days—a staggering 30% drop. This plunge jeopardized millions in Egorov’s debt positions, casting a long shadow of liquidation risks.
In a bid to stave off looming liquidation threats, Egorov embarked on a trading journey. Initially, he offloaded a whopping 106 million CRV, garnering $46 million, a strategic move to mitigate the potential liquidation risks of his hefty debt across various DeFi platforms. Although ignited by fear, this spree of transactions showcased a meticulous approach to navigating the rough waters of DeFi trading.
Egorov’s flurry of activities triggered ripples in the market, causing minor crashes in recent times. Notably, Curve DAO Tokens experienced a dip below $0.4 earlier in September due to massive OTC token acquisitions. Those tokens were later transferred to Binance and retracted after a short stint.
Michael Egorov on The Road to Debt Settlement
Egorov tackled his debt by channeling 68 million CRV ($35.3 million) into Silo, a non-custodial lending protocol. Following this, he borrowed 10.8 million crvUSD from Curve, which was then converted into Tether’s USDT stablecoin, enabling him to promptly clear off the entire debt on Aave. This maneuver signaled his financial acumen and reflected a broader narrative of debt management within the DeFi ecosystem.
Despite clearing the Aave debt, Egorov’s financial ledger still bears a significant debt of around $42.7 million across four DeFi networks. That includes notable amounts on Silo, Fraxlend, Inverse, and Cream. Yet, with about 253.7 million CRV, equivalent to roughly $132 million held as collateral, Egorov’s financial posture remains robust amidst pending obligations.
A Broader Spectrum of Repayments and Collaborations
Egorov’s recent debt settlement is merely a fragment of a more extensive financial activities since August. His collaborative efforts with prominent entities like Wintermute trading firm, Justin Sun of Tron, and NFT investor Jeffrey Huang paint a picture of a well-networked individual navigating the complex DeFi financial landscape.
After Egorov’s substantial deposits into Silo, the network’s Total Value Locked (TVL) soared to $60 million. That underscores the significant impact individual financial activities can have on the broader DeFi market ecosystem.
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