The $CRV Saga | Crypto Daily Digest Aug. 1
Curve Finance experienced a hack on Monday causing CRV price drop. The founder of Curve, Michael Egorov, had a significant $100 million loan backed by 427 million CRV tokens, which represent approximately 47% of the total circulating supply of CRV.
On the Aave platform, Michael had 305 million CRV tokens backing a loan of $63 million USDT. At a liquidation threshold of 55%, his position would be liquidated at a CRV price of $0.37. Additionally, on Frax Finance, Michael had 59 million CRV tokens backing a loan of $15.8 million FRAX.
The large debt position he held posed serious concerns for the CRV price, as there was not enough liquidity available to liquidate his position. This situation could potentially lead to a significant decline in the CRV price, causing a knock-on effect across the entire DeFi ecosystem.
In response to this situation, Michael reportedly raised more than $15 million in stablecoins through CRV over-the-counter sales. Blockchain data indicates that he sold 5 million CRV tokens to Tron founder Justin Sun, another 4.25 million CRV tokens to crypto trader DCFGod, 3.75 million CRV tokens to NFT owner Jeffrey Huang (known as Machi Big Brother), 2.5 million CRV tokens to crypto investors DWF Labs, and 2.5 million CRV tokens to DeFi project Cream Finance, as reported by DeFi analysts Lookonchain.
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