Michael Egorov, founder of Curve Finance, has settled his loan under the Aave protocol, reducing his total debt to $42.7 million. Egorov’s DeFi debt profile was revealed on August 1 following a Curve Finance hack that captured assets worth $73.5 million from various liquidity pools.
As expected, the exploit resulted in a significant price drop for CRV, with the Curve governance token losing over 24% of its value in a single day, according to data from CoinMarketCap. This drop in the CRV market price attracted significant attention to Egorov’s diverse debt positions.
According to a report from blockchain research firm Delphi Digital, it was revealed that the founder of Curve Finance owed around $100 million across multiple DeFi protocols. Interestingly, these loans were collateralized by 427.5 million CRV tokens, representing 47% of the total circulating CRV supply.
Therefore, the falling price of CRV posed a risk of liquidation, which could have been dangerous for the entire DeFi ecosystem.
Michael Egorov Completes Debt Profile on Aave Protocol
According to a report from on-chain analytics platform Lookonchain on Wednesday, Micheal Egorov has now settled his debts on the Aave protocol.
The report states that the Curve founder deposited 68 million CRV worth $35.5 million on the DeFi lending protocol Silo before borrowing the stablecoin crvUSD worth $10.77 million .
After that, Egorov exchanged the crvUSD tokens for USDT and completed the repayment of his debt on the Aave protocol.
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Michael Egorov deposited $68M CRV ($35.5M) at #Silo and borrowed $10.77M crvUSD in the last 2 days.
Then swapped $crvUSD for $USDT and paid off all debt on #Aave.
He currently has $253.67M CRV ($132.52M) in collateral and $42.7M in debt across 4 platforms.https://t.co/stkFvDrlnv pic.twitter .com/oBQ4yiT9Xs
– Lookonchain (@lookonchain) September 27, 2023
Egorov’s current debt profile
Based on further data from Lookonchain, Michael Egorov’s total debt now stands at $42.7 million, spread across four lending protocols: Fraxlend, Silo, Inverse Finance and Cream Finance.
In detail, the Curve Finance founder has his largest debts with Silo, where he owes 17.14 million CRVUSD, which is backed by 105.8 million CRV worth $55.3 million. On Fraxlend, Egorov owes 13.08 million FRAX, secured by 68.7 million CRV worth $35.94 million.
While at Inverse Finance, Michael Egorov has an outstanding debt of 10 million DOLA, collateralized by 66.18 million CRV worth $34.5 million. The Curve Finance founder’s lowest debt can be found with Cream Finance, which includes 2.02 million USDT and 506,000 USDC, secured by 13 million CRV worth $6.8 million.
In total, Egorov’s $42.7 million in debt is backed by 253.67 million CRV worth $132.53 million, representing 28.87% of the total circulating CRV supply.
CRV is trading at $0.516 at the time of writing, up 2.99% in the last day. Meanwhile, the token’s daily trading volume has decreased by 0.73% and stands at $33.85 million. CRV is the 70th largest cryptocurrency with a market cap of $452.87 million.
CRV trading at $0.5161 on hourly chart | Source: CRVUSDT chart on Tradingview.com
Featured image from Entrepreneur, chart from Tradingview
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