coindesk.com
Takeaways
• Over 291 million $CRV tokens have been deposited to Aave, equating to 34% of circulating supply.
• $CRV token is down by 2.1% in 24-hours following a sudden 17% drop on Saturday.
Curve Finance founder Michael Egorov has deposited $24 million worth of Curve DAO ($CRV) tokens to decentralized lending platform Aave to mitigate the liquidation risk of a $65 million stablecoin loan.
Egorov began borrowing stablecoins on Aave in April, with $37 million worth of tether ($USDT) being sent to crypto exchange Bitfinex whilst $51 million in USDC was sent to prominent market maker Wintermute, according to blockchain sleuth Lookonchain.
The wallet belonging to Egorov has supplied a total of $188 million in collateral on Aave, with $64.2 million in $USDT being borrowed in an open position, according to Debank.
The open position currently has a health rate of 1.68, the collateral will be automatically liquidated if it drops below 1.00.
$CRV is currently trading at $0.65 having dropped by 2.1% in the past 24-hours, it slumped by more than 17% in a sudden move in the early hours of Saturday morning.
If the price of $CRV is to continue to slide over the coming months, the value of collateral and thus the health rate will also suffer. $CRV is 90% lower than its 2022 all-time high of $6.50.
In January, Aave cleared bad debt positions that occurred after the Mango Markets exploit worth 2.7 million $CRV.