u.today
In a stunning series of events over the past few days, CurveFi founder Michael Egorov has been involved in a flurry of transactions, unloading a massive quantity of $CRV tokens. The rapid divestiture has ignited speculation and concern across the crypto landscape.
Egorov sold 3.75 million $CRV to Yearn Treasury and 1.25 million $CRV to Stake DAO Governance in a span of just three hours. This follows the previous sale of 59.5 million $CRV to 13 institutions/investors for $23.8 million in just two days.
Egorov also returned a sum of three million USDT on Aave, a decentralized finance protocol. This recent activity coincides with Egorov's debt accumulation, which currently stands at an alarming $82.6 million, distributed among several DeFi platforms, including Aave, Abracadabra, Fraxlend, Inverse and Silo.
The urgency behind these sales seems to stem from a move by Abracadabra protocol, one of Egorov's creditors. Abracadabra, also known as Magic Money, has unilaterally proposed to increase the base interest rate on large loans to 200% annually.
This action would only apply if the loan collateral is twice the amount of the loan, subjecting it to a 5x multiplier. This could potentially force Egorov to return $14.5 million in stablecoins.
The hefty interest increase by Abracadabra and the potential ramifications have placed Egorov in a precarious position. The swift sales and repayments seem to be a strategic move to mitigate the potential fallout from this sudden change. The Curvefi community is on high alert, anxiously observing unfolding events.
While it is difficult to predict the long-term impact of these transactions on the Curvefi ecosystem, Egorov's strategic offloading of $CRV tokens underscores the importance of staying as liquid as possible while maintaining a huge debt.