Curve founder Michael Egorov is on the brink of potential liquidation as his lending positions are threatened by the significant drop in the value of CRV, Curve’s native cryptocurrency. CRV’s price plummeted to a new low of $0.3598, following broader market downturns.
Leveraged Positions Under Threat
Egorov has leveraged a substantial amount of CRV, totaling 371 million tokens valued at approximately $156 million, across six lending platforms to secure $92.54 million in stablecoins. The health rate of these mortgages has now fallen to about 1.1, placing these loans in jeopardy as CRV’s market value declines.
Addressing the Crisis
In response to the declining value of CRV, Egorov previously sold 159.4 million CRV in an over-the-counter transaction to 33 investors and institutions last August, obtaining 63.76 million U stablecoins. This move was aimed at repaying parts of the loan to stave off potential liquidation. With CRV’s ongoing volatility, Egorov faces critical decisions: continue selling CRV, repay the loan using previously borrowed stablecoins, or risk further market declines without taking action.
As of the latest reports, CRV has shown some recovery, trading at $0.4468. However, the situation remains precarious, with Egorov’s financial strategies under close scrutiny as he navigates through these challenging market conditions.
