Curve Founder Repays Aave Debt
Michael Egorov, the founder of Curve Finance, has settled his debt on Aave by depositing 68 million CRV tokens worth $35 million. This payment clears his entire debt position on the DeFi lending protocol and reduces his total debt by over 50%. This settlement alleviates concerns of a potential contagion effect in the DeFi space.
Curve Hack Exposes Egorov’s Debt
In August, Curve Finance experienced a hack that resulted in the loss of $100 million. This incident also revealed Michael Egorov’s debt profile. As a result, the price of CRV tokens dropped by 24% in one day. There were fears that the hackers could trigger a liquidation event while Egorov had illiquid CRV tokens as collateral for his loans.
Egorov Clears Aave Debt
Egorov took swift action to stabilize his loans by selling millions of CRV tokens to liquidity providers. He has successfully cleared his debt on Aave by depositing 68 million CRV tokens on Silo and borrowing $10.77 million worth of crvUSD stablecoin. He then exchanged the stablecoins for USDT to repay his debt on Aave.
Current Debt Profile
Egorov’s outstanding debt now stands at $42.7 million, down from an estimated $100 million. The remaining debt is spread across four platforms: Silo, Fraxlend, Inverse Finance, and Cream Finance. The largest portion is owed on Silo, followed by Fraxlend and Inverse Finance. Cream Finance holds the smallest amount of debt.
Hot Take: Egorov’s Debt Reduced, Contagion Fears Alleviated
Michael Egorov, the founder of Curve Finance, has successfully repaid his debt on Aave, reducing his total outstanding debt by over 50%. This payment has eased concerns of a potential contagion effect in the DeFi space. Egorov’s quick actions to stabilize his loans demonstrate his commitment to resolving his debt and maintaining stability in the market.
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