Curve founder Michael Egorov has fully repaid his debt on Aave, though he still maintains a total collateralization of $132 million in CRV tokens across four lending protocols, with $42.7 million in outstanding debt.
Michael Egorov Clears Aave Debt
According to blockchain analytics by Lookonchain, Egorov deposited 68 million CRV tokens ($35.5 million) into the Silo lending protocol over two days, borrowing 10.77 million crvUSD against this collateral.
He then swapped the borrowed crvUSD for USDT to repay his original debt on Aave. This strategic move reduced his exposure to potential liquidations while maintaining his CRV holdings.
"Michael Egorov currently has 253.67M CRV ($132.52M) in collateral and $42.7M in debt across 4 platforms."
― Lookonchain
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Remaining Debt Structure
Prior to the repayment, Egorov had borrowed $102 million in stablecoins against CRV collateral just before the Curve protocol hack. Post-hack, several DeFi protocols with lending exposure proposed measures to mitigate liquidation risks, pressuring Egorov to reduce positions.
Key details:
- Total Collateral: 253.67M CRV (~$132M)
Remaining Debt: $42.7M distributed across:
- Silo
- Fraxlend
- Inverse Finance
- Cream Finance
CRV Price Recovery
CRV faced significant volatility:
- September Low: $0.389 (below Egorov's OTC sale price of $0.40)
- Current Price: $0.52 (+34.9% from low)
The token's rebound suggests renewed market confidence despite earlier concerns about over-collateralization risks.
Risk Management in DeFi
This case highlights critical aspects of DeFi lending:
- Protocol-Initiated Interventions: How platforms respond to systemic risks
- OTC Sales Impact: Large OTC positions can establish psychological price levels
- Collateral Diversity: Benefits of spreading exposure across multiple protocols
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FAQ
Q: Why did protocols pressure Egorov to repay?
A: To prevent potential mass liquidations that could destabilize CRV markets.
Q: How did CRV price recover?
A: Combination of debt reduction, successful protocol updates, and broader market trends.
Q: What percentage of CRV supply is collateralized?
A: Approximately 7% of circulating supply (~3.5B CRV).
Q: Are there ongoing risks?
A: Yes—high collateralization ratios remain sensitive to CRV price fluctuations.
Risk Disclaimer:
Cryptocurrency investments carry substantial risk. Prices can fluctuate violently, potentially resulting in total capital loss. Always conduct thorough risk assessment.
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