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The founder of crypto lending protocol Curve, Michael Egorov, was liquidated for $140 million Thursday morning after the CRV token dropped as low as 30% Thursday morning.
The platform allows users to swap like-assets, such as dollar-pegged stablecoins or various liquid staking tokens, for one another. Maximized to reduce slippage for large trades, Curve is something of an arbitrage trader’s paradise. Even micro-differences between stablecoins can mean massive profits for whales trading in large volumes.
As of last night, Egorov was using $141 million worth of CRV tokens to secure a $95.7 million stablecoin loan. "If the price of CRV drops by ~10%," wrote blockchain analytics platform Akrham on Twitter last night, "these positions may begin to be liquidated."
Since then the CRV price has sunk as low as $0.23—setting a new all-time low for the token—and has since rebounded slightly to $0.27 at the time of writing.
UPDATE: Michael Egorov was liquidated for $140 Million in CRV.
The price of CRV fell through Egorov’s liquidation threshold this morning, with his entire 9-figure lending position liquidated across 5 protocols.
Two of his accounts incurred together over a million dollars of bad… https://t.co/gT37oBy82Z pic.twitter.com/41np1Gkh0S
— Arkham (@ArkhamIntel) June 13, 2024
"The price of CRV fell through Egorov’s liquidation threshold this morning, with his entire 9-figure lending position liquidated across 5 protocols," Arkham wrote in an update on Twitter.
The firm added that two of his accounts on Curve's Llamalend incurred more than $1 million worth of bad debt, which he's been able to clear after receiving $6 million worth of Tether (USDT) from NextGen Venture Partner Christian Seale sent in two transactions. Seale confirmed what was already visible in onchain data on Twitter.
Just acquired 30M $CRV from @newmichwill , stand with @CurveFinance and future of Defi.
— Christian2022.eth (@Christianeth) June 13, 2024
This isn't the first time Egorov has needed bailing out.
After Curve was exploited last year it sent the price of CRV plummeting to $0.59. And suddenly the lending protocol founder was in danger of being liquidated and needed to repay a $9.2 million worth of Aave loans.
Several well-known DeFi personalities like Tron's founder, Justin Sun, power DeFi user, DCF God, and Jeffrey Huang aka Machi Big Brother stepped in, buying CRV tokens from Egorov.