Curve Founder Michael Egorov Repays Debt on Aave
According to Lookonchain, Michael Egorov, the founder of Curve DeFi network, has fully paid off his remaining debt on the Aave lending protocol. This repayment comes after the recent liquidation risks caused by a significant network exploit that resulted in a drop in CRV token value.
Egorov’s Debt Settlement
As per Lookonchain, Egorov settled the debt by depositing 68 million CRV ($35.3 million) into Silo, a non-custodial lending protocol. He then borrowed 10.8 million crvUSD from Curve, converted it into USDT stablecoin, and promptly repaid the entire 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 the all debt on #Aave.
He currently has 253.67M CRV($132.52M) in collateral and $42.7M in debt on 4 platforms.pic.twitter.com/oBQ4yiT9Xs— Lookonchain (@lookonchain) September 27, 2023
Interestingly, Egorov’s deposits onto Silo led to an all-time high Total Value Locked (TVL) of $60 million on the platform.
Egorov Still Holds Debt in Multiple Platforms
Despite paying off his Aave debt, Egorov still holds significant debt across four other DeFi networks. This includes a 17.1 million crvUSD debt on Silo, a 13.1 million FRAX debt on Fraxlend, a 10 million DOLA debt on Inverse, and a $2.5 million combined USDC and USDT debt on Cream. However, he has approximately 253.7 million CRV ($132 million) as collateral for these debts.
Egorov’s Recent Activities
Egorov has been actively involved in token sale activities and transactions since August. He has collaborated with Wintermute, Justin Sun (founder of Tron), and Jeffrey Huang (an investor in NFTs) for these activities.
Curve’s July Exploit Causes Fear
Egorov’s recent transactional activities have been driven by the fear of price drops following a network exploit in July. The exploit resulted from a programming bug and led to liquidation risks on Egorov’s debt positions. To mitigate these risks, he sold 106 million CRV for $46 million last month.
Minor Market Crashes
Egorov’s activities have caused some minor market crashes in recent weeks. Curve DAO Tokens experienced a dive below $0.4 earlier in September after significant OTC token purchases were made, transferred to Binance, and then returned after a few hours.
Hot Take: Egorov’s Debt Repayment Stabilizes Curve
The full repayment of Michael Egorov’s debt on Aave is a positive development for Curve and the broader DeFi ecosystem. By settling his obligations, Egorov has mitigated potential liquidation risks and restored stability to Curve. This move demonstrates his commitment to maintaining financial integrity within the decentralized finance space. It also highlights the importance of responsible borrowing and risk management in DeFi lending protocols. As the industry continues to evolve, debt repayment actions like Egorov’s will play a crucial role in building trust and confidence among DeFi participants.
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