Curve founder Michael Egorov has unwound his remaining debt position on decentralized credit platform Aave, according to on-chain data reported by Web3 data analytics provider Lookonchain.
Egorov has deposited 68 million CRV ($35.3 million) into non-custodial lending protocol Silo and borrowed 10.8 million of Curve’s decentralized stablecoin crvUSD over the past two days, Lookonchain reported on X (formerly Twitter). He then traded crvUSD for Tether’s USDT stablecoin and paid off his entire debt position on Aave today.
Egorov currently has 253.7 million CRV ($132 million) in collateral, securing $42.7 million in remaining debt positions in four other DeFi protocols, Lookonchain added. This includes 17.1 million crvUSD ($17.1 million) on Silo, 13.1 million FRAX ($13.1 million) on Fraxlend, 10 million DOLA ($10 million) on Inverse and $2.5 million in USDC and USDT debts on Cream.
Egorov’s precarious debt positions and OTC deals
In August, Egorov sold 106 million CRV for $46 million in deals to reduce potential liquidation risks associated with its outstanding debt on the various DeFi platforms, including Aave. Egorov has been working to repay some of this debt to mitigate liquidation risks by selling the CRV tokens for stablecoins.
The token sales include deals with crypto trading firm Wintermute, Tron founder Justin Sun and NFT investor Jeffrey Huang (Machi Big Brother). An anonymous entity closed the largest OTC deal with Egorov, purchasing 17.5 million CRV tokens.
The OTC selling followed a 30% drop in CRV’s price to $0.50 after a security exploit hit multiple Curve Finance liquidity pools in July.
Earlier this month, the price of Curve DAO tokens fell below $0.40 after 609,000 CRVs purchased over-the-counter from Egorov were transferred to Binance, only to be returned a few hours later.
According to CoinGecko, CRV is currently trading at $0.52 – up 1% in the last 24 hours.
CRV/USD price chart. Image: CoinGecko.
Disclosure: Wintermute co-founder Evgeny Gaevoy sits on the board of The Block.