2024-06-14
On June 13, 2024, DeFi loans associated
with Curve founder, Michael Egorov, faced liquidation.
This event led to a sharp 30% decline in the price of Curve’s native token, CRV.
The liquidation was triggered by a substantial loan against CRV tokens, where addresses linked to Egorov were borrowing nearly $100 million in various stablecoins against $140 million in CRV collateral.
As a result, on June 13, Curve founder’s
lending positions in DeFi platforms get liquidated and caused $10 million in
bad debt. Curve founder said he repaid 93% of bad debt.
Egorov borrowed stablecoins from DeFi platforms such as
Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend using CRV tokens as
collateral.
Egorov tried to reduce
risks. He repaid several loans on Inverse and Llamalend with FRAX, DOLA and CRV
tokens.
He conducted several swaps
between CRV and Tether's USDT.
As of June 14, 2024, CRV token 24 hours price up 8% but 7 days price down 37%.
There are 2 reasons that make CRV price
going downtrend.
First, there is no hype in DeFi tokens
such as CAKE, CRV, AERO, and RAY. Except for some tokens such as UNI and JUP.
Second, Curve Finance was hacked in
late July 2023. Although the hacking incident has ended for a long time. It
make Curve lost $1 billion in TVL since then.
Curve needs to have $3.255 billion in TVL to
get same number of TVL before the hacking incident happened. Now Curve has
$2.258 billion in TVL.
