CRV Token Price Drops 30 as Curve DAO Founder Engages in Liquidation
Curve DAO token (CRV) experienced a significant drop of almost 30% in value over the last 24 hours, now trading at approximately $0.26.
The founder of Curve Finance, Michael Egorov, found himself in a precarious position as his on-chain loan positions faced liquidation due to his use of CRV tokens as collateral.
Egorov has a staggering 111 million CRV tokens (equivalent to $33.87 million) serving as collateral for his $20.6 million debt spread across four DeFi platforms: Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend.
To mitigate the risk of further liquidation, Egorov has begun repaying borrowed stablecoins. However, despite his efforts, additional liquidations exceeding $5 million took place on UwU Lend.
The recent plummet in the price of CRV has sent shockwaves through the decentralized finance (DeFi) space, with concerns arising about the future of the Curve Finance project and its impact on the broader ecosystem.
CRV is utilized as a trading pair and stabilizing element in various DeFi trading pools, and the liquidation of such a significant position is starting to exert pressure on other protocols.
In an attempt to alleviate potential liquidation risks associated with his outstanding debts across DeFi platforms, Egorov sold 106 million CRV tokens for $46 million in August 2023. However, the current situation indicates that the founder’s financial challenges persist.
