Curve Founder Closes Debt Position on Aave
The founder of Curve, Michael Egorov, has recently closed his debt position on the decentralized lending platform, Aave. This means that he is no longer active on the platform. To close his debt position, Egorov had to borrow over ten million crvUSD tokens and exchange them for USDT. In order to obtain this loan, he pledged 68 million CRV tokens worth over $35 million as collateral.
The Curve Finance Protocol and Aave Crypto
Curve Finance is a decentralized finance protocol with over $2 billion in total value locked (TVL), while Aave has a higher TVL of over $4.6 billion. Curve Finance is similar to Uniswap and used to compete with it, but its daily trading volumes have significantly decreased compared to Uniswap. In early 2023, Curve’s daily trading volumes were over $400 million, but they have since dropped below $100 million.
The CRV Token and Aave’s AAVE Token
Curve Finance has its own token called CRV, which has experienced price fluctuations throughout 2023. Although it is currently up nearly 4%, its price has not shown significant growth compared to the end of 2022. The price of CRV started the year at $0.52, reached a high of over $1.2 in February, and then fell to an annual low of $0.39 in mid-September.
Aave’s governance token, AAVE, has gained 1% in the crypto market and is up 9% in the past thirty days. Its current market value of $62 is higher than its value at the beginning of the year but lower than its all-time high recorded in May 2021.
Michael Egorov and His Activity on Aave Crypto
Michael Egorov has been actively involved in various financial transactions within the DeFi space in 2023. In August, he sold 106 million CRV tokens to reduce potential liquidation risks associated with his debt positions on different platforms, including Aave. Additionally, Curve Finance experienced a hack in July that resulted in a loss of $70 million.
Hot Take: An Eventful Year for Curve Founder and Aave Crypto
2023 has been an eventful year for Michael Egorov and Curve Finance. His recent transaction to close his debt position on Aave may not have had a significant effect on the price of CRV. The future of this affair and Egorov’s involvement with Aave remain uncertain as the year progresses.
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