A wallet labeled as belonging to Curve Finance founder Michael Egorov transferred 38 million CRV tokens worth $24 million to the Aave protocol to mitigate the risk of liquidation, analysts at Lookonchain have noted.
The founder of https://t.co/KJyxZS1wiW deposited 38M $CRV ($24.5M) into #Aave due to a 16% drop in $CRV price, increasing the health rate to 1.52.
He has deposited a total of 290M $CRV ($187M) into #Aave and borrowed $71M stablecoins.https://t.co/WM1nW8JKwU pic.twitter.com/MGvMDmSv5S
— lookonchain (@lookonchain) June 10, 2023
The transaction followed after a 16% drop in the price of CRV. The deposited amount increased the security’s health rating to 1.52. When the indicator reaches one, the debt position is automatically liquidated.
Egorov’s total deposit on Aave is 290 million CRV ($187 million). The amount represents approximately 34% of the total market supply of Curve (CoinGecko) tokens.
Under this pledge, the entrepreneur borrowed $71 million on Aave in USDT and USDC stablecoins.
According to CoinGecko, over the past seven days, CRV quotes have lost more than 22%, and the price of the token has decreased by 2.4% per day. The total capitalization of the cryptocurrency market has not changed over this period.
The total value of assets locked on the Aave protocol is $5.1 billion (DeFi Llama). At Curve Finance, the indicator reaches $3.94 billion.
Recall, according to media reports, Michael Egorov and his wife Anna purchased two villas worth about $40 million in Melbourne.
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