Michael Egorov, founder of Curve Finance, has settled his Aave Protocol loan and reduced his total debt to $42.7 million. Egorov’s DeFi debt profile was revealed on August 1 following a Curve Finance hack that extracted $73.5 million in assets from various liquidity pools.
As expected, the exploit caused a significant drop in CRV’s price, with the Curve governance token losing more than 24% of its value in one day. based on data from CoinMarketCap. This decline in CRV’s market price brought much attention to Egorov’s many debt positions.
According to a report by blockchain research firm Delphi Digital, it was revealed that the founder of Curve Finance owed around $100 million through various DeFi protocols. Interestingly, these loans were backed by 427.5 million CRV tokens, representing 47% of CRV’s entire circulating supply.
Therefore, CRV’s falling price posed a threat of liquidation, which could have been dangerous for the entire DeFi ecosystem.
Michael Egorov closes debt profile on Aave protocol
According to a report On Wednesday, Micheal Egorov settled his debt on the Aave protocol through the on-chain analytics platform Lookonchain.
The report states that Curve’s founder deposited 68 million CRV, worth $35.5 million, into DeFi lending protocol Silo before moving to lend $10.77 million in stablecoin crvUSD.
Afterwards, Egorov exchanged the crvUSD tokens for USDT and completed the repayment of his debt according to the Aave protocol.
Michael Egorov deposited 68 million $CRV ($35.5 million). #Silo and borrowed 10.77 million $crvUSD in the past 2 days.
Then traded $crvUSD for $USDT and paid off all debts #Aave.
He currently has 253.67 million $CRV($132.52 million) in collateral and $42.7 million in debt across 4 platforms.https://t.co/stkFvDrlnv pic.twitter.com/oBQ4yiT9Xs
— Lookonchain (@lookonchain) September 27, 2023
Egorov’s current debt profile
Based on more data from Lookonchain, Michael Egorov’s total debt now stands at $42.7 million, spread across four lending protocols: Fraxlend, Silo, Inverse Finance, and Cream Finance.
In detail, the founder of Curve Finance has his largest debt on Silo, where he owes 17.14 million CRVUSD, backed by 105.8 million CRV, worth $55.3 million. On Fraxlend, Egorov owes 13.08 million FRAX, backed by 68.7 million CRV, worth $35.94 million.
At Inverse Finance, Michael Egorov has outstanding debt of 10 million DOLA, backed by 66.18 million CRV, worth $34.5 million. The lowest debt of the Curve Finance founder is at Cream Finance, which includes 2.02 million USDT and 506,000 USDC, backed by 13 million CRV, worth $6.8 million.
In total, Egorov’s debt worth $42.7 million is backed by 253.67 million CRVs, worth $132.53 million, representing 28.87% of the total circulating supply of CRVs.
CRV is trading at $0.516 at the time of writing, with a gain of 2.99% on the last day. Meanwhile, the token’s daily trading volume is down 0.73%, valued at $33.85 million. CRV is the 70th largest cryptocurrency with a market cap value of $452.87 million.
CRV trading at $0.5161 on the hourly chart | Source: CRVUSDT chart on Tradingview.com
Featured image of Entrepreneur, chart from Tradingview
