Michael Egorov, founder of the decentralized finance (DeFi) protocol curve, recently settled its loans to lending platform Aave, reducing its debt by $42.7 million to other DeFi protocols.
According to the on-chain analysis platform, Lookonchain, The Curve founder deposited 68 million CRV tokens, worth $35.5 million, to the Silo lending protocol and borrowed 10.77 million crvUSD stablecoins in the last two days. After that, Egorov exchanged crvUSD for Tether (USDT) and paid off all his Aave debt.
According to Lookonchain, The founder of Curve Finance currently has a total of 253.67 million CRV tokens as collateral and outstanding debt of USD 42.7 million in four protocols, including Silo, Fraxlend, Inverse and Cream.
On August 1, Egorov made headlines for his $100 million DeFi loan, as reports indicated that a further drop in the price of Curve DAO (CRV) tokens could prompt the liquidations and cause a DeFi implosion. Seeing the risks, Curve’s founder took steps to reduce his debt and utilization rate at the time.
During that time, CRV token prices fell as the protocol suffered a $47 million hack due to a penetration vulnerability. On July 30, several stability pools of Curve were affected due to vulnerabilities in the Vyper programming language. According to Curve, the reentry lock failed and the pools were compromised. The CRV token price fell from $0.73 on July 30 to $0.50 on August 1.