Michael Egorov, the founder of Curve Finance, is facing further liquidation risk with regards to his on-chain loans, after having a portion of his positions liquidated earlier on Thursday.
The price of Curve DAO ( CRV -27.71% ), the token linked to the decentralized exchange, has fallen over 25% in the past 24 hours to trade at $0.262 at the time of writing, according to The Block’s price page.
“[Egorov] currently has 111.87 million CRV ($33.87 million) in collateral and $20.6 million in debt on four platforms,” Lookonchain wrote.
Egorov had borrowed various stablecoins from DeFi platforms Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend using CRV tokens as collateral.
Earlier today, Egorov had started to get liquidated on Inverse but then measures to mitigate further risks.
Egorov’s position on Inverse currently has a health rate of 1.07, where liquidation is typically triggered when the number reaches one. Egorov has begun repaying the borrowed stablecoin DOLA, on-chain data shows. The loan taken on UwU Lend remains underwater.
Blockchain intelligence firm Arkham had forecasted earlier on Wednesday that Egorov’s CRV positions worth $140 million were nearing liquidation, adding that the Curve founder is paying $60 million in annualized rates to maintain his positions on LlamaLend.
CRV price chart | Source: The Block (via TradingView data)
The blockchain intelligence firm predicted that a drop in CRV’s value of around 10% would trigger Egorov’s positions to be liquidated.
In August 2023, Egorov sold 106 million CRV for $46 million in deals to reduce potential liquidation risks associated with his outstanding debt across various DeFi platforms, including Aave.