Curve Founder Michael Egorov Nears Liquidation on Massive DeFi Loan amid Crypto Market Plunge
The founder of the decentralized finance protocol Curve (CRV), Michael Egorov, found himself on the brink of liquidation as the crypto market took a nosedive over the weekend. With Bitcoin dropping by 10% and altcoins like CRV plummeting even further, Egorov’s massive DeFi loan was in danger of being liquidated.
Egorov had borrowed $92.5 million in stablecoins by mortgaging 371 million CRV tokens (~$156 million) across 6 different DeFi lending platforms. As the price of CRV fell to $0.43, just shy of his $0.37 liquidation point, Egorov was facing a critical situation.
To prevent liquidation, Egorov had to either increase his collateral base with more CRV or pay off some of his debt. In the past, he had sought help from crypto heavyweights like Justin Sun, who bought 5 million CRV from him at $0.40 each.
The fear of liquidation was not unique to Egorov, as crypto traders collectively lost over $1.5 billion in liquidations during the weekend crash. Decentralized exchanges saw $120 million in liquidations, highlighting the widespread impact of the market downturn.
As Egorov and others scrambled to protect their positions, the volatility in the crypto market served as a stark reminder of the risks involved in DeFi loans and trading. The future of CRV and Egorov’s loan remained uncertain as the market continued to fluctuate.
