Curve Founder Faces $140 Million Liquidation After CRV Cost Plunges

The founding father of crypto lending protocol Curve, Michael Egorov, was liquidated for $140 million Thursday morning following the CRV token dropped as little as 30% Thursday morning.

The woking platform enables users to swap like-assets, for example dollar-pegged stablecoins or various liquid staking tokens, for each other. Maximized to lessen slippage for big trades, Curve is one thing of the arbitrage trader’s paradise. Even micro-variations between stablecoins often means massive profits for whales buying and selling in bulk.

By yesterday, Egorov was using $141 million price of CRV tokens to have a $95.seven million stablecoin loan. “When the cost of CRV drops by ~10%,” authored blockchain analytics platform Akrham on Twitter yesterday, “these positions can start to become liquidated.”

Since that time the CRV cost has sunk as little as $.23—setting a brand new all-time low for that token—and has since rebounded slightly to $.27 during the time of writing.

“The cost of CRV fell through Egorov’s liquidation threshold today, together with his entire 9-figure lending position liquidated across 5 protocols,” Arkham authored within an update on Twitter.

The firm added that a couple of his accounts on Curve’s Llamalend incurred greater than $a million price of bad debt, which he’s had the ability to obvious after receiving $six million price of Tether (USDT) from NextGen Venture Partner Christian Seale submitted two transactions. Seale confirmed that which was already visible in onchain data on Twitter.

This is not the very first time Egorov has needed bailing out.

After Curve was exploited this past year it sent the cost of CRV plummeting to $.59. And all of a sudden the lending protocol founder was at risk of being liquidated and required to pay back a $9.two million price of Aave loans.

Several well-known DeFi personalities like Tron’s founder, Justin Sun, power DeFi user, DCF God, and Jeffrey Huang also known as Machi Your Government walked in, buying CRV tokens from Egorov.