Curve Finance Founder Clears Aave Loan, Reduces Total Debt To $42.7 Million

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Michael Egorov, founding father of Curve Finance, has settled his mortgage on the Aave Protocol and lower his whole debt to $42.7 million. Egorov’s DeFi debt profile was revealed on August 1 following a Curve Finance hack that extracted $73.5 million value of belongings throughout varied liquidity swimming pools.

As anticipated, the exploit prompted a major decline within the value of CRV, with the Curve governance token dropping over 24% of its worth in a single day, based mostly on information from CoinMarketCap. This fall in CRV’s market value introduced a lot consideration to Egorov’s a number of debt positions.

In accordance with a report by blockchain analysis agency Delphi Digital, it was revealed that the Curve Finance founder owed round $100 million throughout a number of DeFi protocols. Apparently, these loans have been collateralized by 427.5 million CRV tokens, representing 47% of the whole CRV circulating provide.

Due to this fact, the dwindling value of CRV offered a menace of liquidation, which may have been harmful to the whole DeFi ecosystem.

Michael Egorov Closes Debt Profile On Aave Protocol

In accordance with a report on Wednesday by the on-chain analytics platform Lookonchain, Micheal Egorov has now cleared his debt on the Aave protocol.

The report acknowledged that the Curve Founder deposited 68 million CRV, value $35.5 million, on DeFi lending protocol Silo earlier than continuing to borrow $10.77 million value of the stablecoin crvUSD.

After that, Egorov swapped the crvUSD tokens for USDT and finalized the reimbursement of his debt on the Aave Protocol.

Michael Egorov deposited 68M $CRV ($35.5M) to #Silo and borrowed 10.77M $crvUSD up to now 2 days.

Then swapped $crvUSD for $USDT and repaid the all debt on #Aave.

He presently has 253.67M $CRV($132.52M) in collateral and $42.7M in debt on 4 platforms.https://t.co/stkFvDrlnv pic.twitter.com/oBQ4yiT9Xs

— Lookonchain (@lookonchain) September 27, 2023

Egorov’s Present Debt Profile

Based mostly on extra information from Lookonchain, Michael Egorov’s whole debt now stands at $42.7 million unfold throughout 4 lending protocols: Fraxlend, Silo, Inverse Finance, and Cream Finance.

Intimately, the Curve Finance founder has his largest debt on Silo, the place he owes 17.14 million crvUSD backed by 105.8 million CRV, value $55.3 million. On Fraxlend, Egorov owes 13.08 million FRAX, collateralized by 68.7 million CRV, valued at $35.94 million.

Whereas on Inverse Finance, Michael Egorov has an impressive debt of 10 million DOLA, backed by 66.18 million CRV, value $34.5 million. The Curve Finance founder’s lowest debt could be discovered on Cream Finance, which contains 2.02 million USDT and 506,000 USDC, secured by 13 million CRV, valued at $6.8 million.

Altogether, Egorov’s $42.7 million debt is backed by 253.67 million CRV, value $132.53 million, representing 28.87% of the full CRV circulating provide.

CRV trades at $0.516 when writing, with a 2.99% achieve on the final day. In the meantime, the token’s every day buying and selling quantity is down by 0.73%, valued at $33.85 million. CRV ranks because the seventieth largest cryptocurrency with a market cap worth of $452.87 million.