|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Curve Finance Founder Michael Egorov Faced Liquidation as CRV Token Plunged to an All-Time Low of $0.219
Jun 13, 2024 at 05:31 pm
Michael Egorov, founder of Curve Finance, faced liquidation earlier today after the CRV token plummeted to an all-time low of $0.219.
Founder of Curve Finance (CRV) and a prominent decentralized finance (DeFi) figure, Michael Egorov, faced partial liquidation on his lending positions earlier today after the CRV token hit a new all-time low of $0.219.
According to on-chain analyst EmberCN, Egorov’s lending positions were largely liquidated, totaling around 100 million CRV, valued at $27 million. However, he still holds 39.35 million CRV, securing $5.4 million in stablecoins on a lending platform, which are not at immediate risk of liquidation as the loan health rate has surpassed 1.
“Michael Egorov's CRV positions (across 5 protocols) are at risk of liquidation if the price of CRV drops another 10%.
Egorov's CRV positions are currently valued at $140 million, and his borrowing costs are as high as 120% APY on some protocols.”
Blockchain intelligence platform SoSo Value noted that Egorov’s situation triggered widespread CRV liquidations across various platforms. While his actions didn’t create direct selling pressure, he reportedly profited quickly in another manner, potentially disadvantaging lenders and former CRV investors.
“Curve, an established DeFi project, is known for its quality and long-term profitability. However, whether this incident will impact Curve’s standing and reduce community cohesion remains to be seen.”
As reported by CryptoSlate, Arkham Intelligence previously highlighted Egorov’s substantial borrowing, which could be liquidated if the price of CRV dropped. The on-chain analysis firm noted that Egorov had borrowed crvUSD at an interest rate of 120% APY on Llamalend.
“$50 million of Egorov's crvUSD borrows are on Llamalend, which currently costs him ~120% APY. This is because there is almost no remaining crvUSD available for borrowing against CRV on Llamalend. 3 of Egorov's accounts already make up over 90% of the borrowed crvUSD on the protocol.”
This isn’t the first time that Egorov’s large borrowing on Curve has disrupted the market. In March 2023, a hacking event resulted in sharp declines in CRV price, leading several DeFi protocols to ban additional CRV borrowing, citing the contagion risk from Egorov’s actions.
Curve Finance founder reveals how UwU hack was prevented from bankrupting DeFi protocol
Amid the market turmoil, Egorov praised Curve Finance’s soft liquidation mechanism on June 12 for successfully handling a real-world test during the recent UwU lending platform hack.
According to LLAMMA documentation, new loans deposit collateral into multiple bands across the automated market maker (AMM). So, unlike traditional liquidation with a single price, LLAMMA has several liquidation ranges and continuously liquidates collateral if necessary.
“The system showed a fantastic performance. This gave time for liquidators to prepare funds and OTC-liquidate the hacker’s position. As a result, the system has no hacker’s funds left, no bad debts, everything operates well.”
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- XRP (XRP) Primed to Explode as Anticipated Return to All-Time High (ATH) Territory May Occur Sooner Than Anticipated
- Nov 24, 2024 at 04:25 pm
- The crypto market has been abuzz with activity regarding XRP, and there is a consensus among investors that its anticipated return to all-time high (ATH) territory may occur sooner than anticipated.
-
- Cardano, Litecoin, and Cosmos Are Poised for Significant Movement in the Cryptocurrency Market
- Nov 24, 2024 at 04:25 pm
- Data from ChangeNOW, a platform for exchanging cryptocurrencies without registration, shows increased transaction volumes for these coins. Used by savvy investors and large holders concerned about fund safety, the growing activity suggests an accumulation phase and hints at potential future growth for these assets.
-
- Sui Foundation Partners with Franklin Templeton Digital Assets to Accelerate the Development of the Sui Blockchain Ecosystem
- Nov 24, 2024 at 04:20 pm
- The alliance aims to accelerate the development of the Sui blockchain ecosystem by providing developers with advanced tools and technologies to explore the full potential of blockchain innovation.
-
- The "dimethyltryptamine.eth" Ethereum Wallet Known for Its Extraordinary Success in Memecoin Trading Has Switched Its Focus from $MOODENG to $WOJAK
- Nov 24, 2024 at 04:20 pm
- The whale sold 2.105 billion $MOODENG tokens for 134.4 ETH, approximately $443,000, locking in a profit of 77.4 ETH, which translates to $255,000.
-
- Pepe (PEPE) Keeps Rallying With Top 10 in Sight as Experts Predict Rollblock’s (RBLK) Unique Strategy Could Result in Meme Coin Returns of 10,000x
- Nov 24, 2024 at 04:20 pm
- The recent shake-up in the meme coin sector has investors wondering if Pepe (PEPE) could overtake Shiba Inu (SHIB) as Dogecoin’s number one challenger