Web3 data analytics platform Lookonchain reported that Curve Finance founder Michael Egorov has paid off all of his debt on decentralized lending protocol Aave.
Lookonchain reported on its X account (formerly Twitter) that Curve Finance founder Michael Egorov has liquidated his entire debt position on Aave by executing several trades.
According to data platform Web3, Egorov deposited a total of 68 million CRV, equivalent to about $35,5 million, on the lending marketplace platform Silo Finance. After this, Egorov borrowed 10,7 million from the Curve decentralized stablecoin, crvUSD, and used them to pay off all of his Aave debt.
To execute the debt repayment in question, Egorov first exchanged the 10,77 million crvUSD for USDT, the centralized stablecoin issued by Tether Limited.
Currently, the Curve Finance founder holds a total of 253,6 million CRV, worth around $132,5 million, in collateral, Lookonchain said. But Egorov still holds $42,7 million in debt positions across four other crypto lending protocols, including the Silo Finance protocol.
Earlier this year, Egorov’s stash of CRV tokens had been at risk of liquidation due to the token’s price plummeting following the Curve Finance protocol exploit in July, which resulted in $70 million in losses. According to CoinDesk, Egorov’s position was on the verge of being liquidated when the CRV price dropped to around $0,40, as Egorov’s collateral level was at $0,362.
To avoid liquidation of his positions and pay his debts, Egorov was carrying out several OTC (Over the Counter) operations with entities that have been identified as “questionable”, such as businessman Jeffrey Huang, who was accused of embezzling funds in Ethereum.
His efforts to pay off his massive debts also raised questions about investing in DeFi, primarily because of the systemic risk that large lending positions like Egorov’s pose to decentralized lending protocols.
However, this week, the price of the CRV token registered a increase of almost 20% due to the movements that were observed in the market with the token. Lookonchain had pointed out earlier this week that the million-dollar movements of CRV whales were driving the price of the token upwards.
At the time of writing, the price of CRV remains trading above $0,51, while the price of SILO, the native token of Silo Finance, has surpassed $0,043 per unit, registering a weekly growth of more than 60%.
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