Michael Egorov, founding father of Curve Finance, confronted liquidation earlier as we speak after the CRV token plummeted to an all-time low of $0.219.
$27 million liquidated
On-chain analyst EmberCN reported that Egorov’s lending positions have been largely liquidated, totaling round 100 million CRV, valued at $27 million. Regardless of this, he nonetheless holds 39.35 million CRV, securing $5.4 million in stablecoins on a lending platform.
Nevertheless, these remaining belongings usually are not at speedy threat of liquidation, because the mortgage well being price has surpassed 1.
Blockchain intelligence platform SoSo Worth famous that Egorov’s scenario triggered widespread CRV liquidations throughout numerous platforms. Though his actions didn’t create direct promoting strain, he reportedly profited shortly in one other method, doubtlessly disadvantaging lenders and former CRV traders.
It added:
“Curve, as a longtime DeFi venture, is thought for its high quality and long-term profitability. Nevertheless, whether or not this incident will affect Curve’s standing and scale back group cohesion stays to be seen.”
Notably, Arkham Intelligence beforehand warned that Egorov’s CRV positions value $140 million throughout 5 protocols have been vulnerable to liquidation if the digital asset’s value dropped 10%. The corporate defined:
“$50 million of Egorov’s crvUSD borrows are on Llamalend, which presently prices him ~120% APY. It is because there may be virtually no remaining crvUSD accessible for borrowing towards CRV on Llamalend. 3 of Egorov’s accounts already make up over 90% of the borrowed crvUSD on the protocol.”
In the meantime, this isn’t the primary time Egorov’s substantial borrowing on Curve has disrupted the market. Final yr, a hacking occasion resulted in sharp declines in CRV value, forcing a number of DeFi protocols to prohibit extra CRV borrowing, citing the contagion threat from Egorov’s actions.
Curve’s tender liquidation
Amid the market turmoil, Egorov praised Curve Finance’s tender liquidation mechanism on June 12 for efficiently dealing with a real-world take a look at throughout the latest UwU lending platform hack.
In accordance with LLAMMA documentation, new loans deposit collateral into a number of bands throughout the automated market maker (AMM). So, in contrast to conventional liquidation with a single value, LLAMMA has a number of liquidation ranges and constantly liquidates collateral if needed.
He mentioned:
“The system confirmed a improbable efficiency. This gave time for liquidators to arrange funds and OTC-liquidate the hacker’s place. In consequence, the system has no hacker’s funds left, no dangerous money owed, every thing operates nicely.”
