Curve Finance Founder Deposits $24M CRV into Aave to Safeguard $65M Stablecoin Loan

CRV is trading 2.1% lower over the past 24-hours following a sharp drop on Saturday.

AccessTimeIconJun 12, 2023 at 9:52 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Takeaways

• Over 291 million CRV tokens have been deposited to Aave, equating to 34% of circulating supply.

  • Bitcoin Transaction Fees Slide Significantly Post Halving
    00:55
    Bitcoin Transaction Fees Slide Significantly Post Halving
  • 21Shares Exec on Consumer Facing Applications Powered by Blockchain
    00:51
    21Shares Exec on Consumer Facing Applications Powered by Blockchain
  • 21Shares Exec on Aftermath of the Halving, Future of Bitcoin Network
    15:24
    21Shares Exec on Aftermath of the Halving, Future of Bitcoin Network
  • World Chain Is a Blockchain 'Designed for Humans': Tools for Humanity Exec
    00:31
    World Chain Is a Blockchain 'Designed for Humans': Tools for Humanity Exec
  • • CRV token is down by 2.1% in 24-hours following a sudden 17% drop on Saturday.

    Curve Finance founder Michael Egorov has deposited $24 million worth of Curve DAO (CRV) tokens to decentralized lending platform Aave to mitigate the liquidation risk of a $65 million stablecoin loan.

    Egorov began borrowing stablecoins on Aave in April, with $37 million worth of tether (USDT) being sent to crypto exchange Bitfinex whilst $51 million in USDC was sent to prominent market maker Wintermute, according to blockchain sleuth Lookonchain.

    The wallet belonging to Egorov has supplied a total of $188 million in collateral on Aave, with $64.2 million in USDT being borrowed in an open position, according to Debank.

    The open position currently has a health rate of 1.68, the collateral will be automatically liquidated if it drops below 1.00.

    CRV is currently trading at $0.65 having dropped by 2.1% in the past 24-hours, it slumped by more than 17% in a sudden move in the early hours of Saturday morning.

    If the price of CRV is to continue to slide over the coming months, the value of collateral and thus the health rate will also suffer. CRV is 90% lower than its 2022 all-time high of $6.50.

    In January, Aave cleared bad debt positions that occurred after the Mango Markets exploit worth 2.7 million CRV.

    Edited by Parikshit Mishra.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Oliver Knight

    Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.