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Curve founder Michael Egorov has cleared his debt on Aave by depositing 68 million CRV tokens worth $35 million. This amount settles his entire debt position on the DeFi lending protocol.
The settlement of the Aave loan eased the looming contagion fears, with Egorov’s total debt now reduced by over 50%.
Curve Hack Exposes Egorov Debt
In August, Curve Finance came into the news for all the wrong reasons, as it was revealed that the protocol’s pools were hacked for $100 million. Apart from giving the decentralized finance space a new headache, the exploit also revealed Curve Finance founder Michael Egorov’s debt profile. As expected, the price of CRV experienced a significant decline, losing over 24% of its value in a single day, according to data from CoinMarketCap.
With Egorov’s debt position exposed, there were considerable fears of a contagion spreading across the DeFi space. The fear was that the hackers could trigger a liquidation event by choosing to dump their stolen stash while Egorov backed his loans with illiquid CRV tokens. According to a blockchain research firm, Delphi Digital report, Egorov owed around $100 million across multiple DeFi protocols. These loans were collateralized by 427 million CRV tokens, 47% of the entire circulating supply of CRV.
Egorov Clears Aave Debt
However, Egorov moved quickly to sell millions of CRV tokens to liquidity providers in an effort to stabilize his loans. As such, on-chain data has shown that Egorov has cut down his debt significantly. On Wednesday, on-chain analytics platform Lookonchain published a report stating that Egorov had cleared his debt on Aave. The report added that Egorov deposited 68 million CRV tokens worth $35.5 million on DeFi lending platform Silo. He then proceeded to borrow $10.77 million worth of the crvUSD stablecoin. Following this, Egorov swapped the crvUSD stablecoins for USDT and repaid his debt on Aave.
“Michael Egorov deposited 68M $CRV ($35.5M) to #Silo and borrowed 10.77M $crvUSD in the past 2 days. Then swapped $crvUSD for $USDT and repaid all the debt on #Aave. He currently has 253.67M $CRV ($132.5
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Author: Amara Khatri
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