3 months ago
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Michael Egorov clears million-dollar bad debt after a critical CRV sell-off.
Curve Finance founder Michael Egorov got liquidated today for $140 million of Curve’s native token CRV, as reported by Arkham Intelligence. Egorov borrowed nearly $96 million in stablecoins, mostly crvUSD, against his collateral in CRV on five different protocols.
As highlighted by Arkham, Egorov is paying $60 million in interest per year to keep his positions open on Llamalend, where over 50% of his borrows were taken. The current Llamalend APY is close to 120%.
The reason behind the significant APY is the lack of crvUSD available on the platform, as Egorov borrowed over 90% of the stablecoin holdings. Between June 12th and 13th, the price of CRV fell by 24%, prompting the liquidation of his positions.
UPDATE: Michael Egorov was liquidated for $140 Million in CRV.
The price of CRV fell through Egorov’s liquidation threshold this morning, with his entire 9-figure lending position liquidated across 5 protocols.
Two of his accounts incurred together over a million dollars of bad… https://t.co/gT37oBy82Z pic.twitter.com/41np1Gkh0S
— Arkham (@ArkhamIntel) June 13, 2024
As a result, Llamalend got hit with over $1 million in debt with no collateral, commonly known as bad debt. However, Egorov managed to cover that after selling 30 million CRV tokens to NextGen Digital Venture partner known as Christianeth for $6 million.
In July 2023, after Curve’s factory pools got hit with a hack, the price of CRV plunged and threatened to liquidate Egorov’s positions back then. As reported by X user Lookonchain, Curve Finance founder sold a total of 72 million CRV tokens to 15 investors on August 3rd, 2023, including DWF Labs, Justin Sun, and Wintermute.
Update:
The #Curvefi founder(Michale Egorov) sold a total of 72M $CRV to 15 institutions/investors via OTC at a price of $0.4 and received $28.8M to repay the debts.
He currently has 374.18M $CRV ($220.4M) in collateral and $79M in debt on 5 platforms. pic.twitter.com/taSExmR7Kq
— Lookonchain (@lookonchain) August 3, 2023
The deals were made via over-the-counter (OTC) desks for $0.40, amounting to almost $29 million to repay on-chain debts.
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