Summary:
Curve Finance founder Michael Egorov is facing potential liquidation due to his on-chain debts of around $80 million. Despite his efforts to raise funds, he has only been able to pay down some of his borrows from various lending platforms. If the price of CRV, the native token of Curve Finance, drops further, it could lead to a risky situation for Egorov on Aave, where he still owes around $50 million. Egorov has raised at least $28.8 million by selling CRV tokens, but the true figure may be higher when accounting for off-chain deals.
Key Points:
– Michael Egorov, founder of Curve Finance, is facing liquidation pressure due to his on-chain debts.
– Despite raising $28.8 million from selling CRV tokens, Egorov still owes around $80 million.
– The borrowed amount includes loans from Aave, Abracadabra, FraxLend, and Inverse Finance.
– If the price of CRV drops further, Egorov could face a risky situation on Aave, where he still owes around $50 million.
– The true amount raised by Egorov may be higher than $28.8 million as it doesn’t account for off-chain deals.
Hot Take:
Michael Egorov’s struggle with on-chain debts and potential liquidation highlights the risks involved in the crypto industry. Even experienced individuals like Egorov can face financial challenges, showcasing the volatility and uncertainties of the market. It serves as a reminder for crypto readers to thoroughly assess the risks before engaging in any investment or borrowing activities in the decentralized finance sector.
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