Aave

Token

Gauntlet

Million

<ul class="list-ic vertical"> 
 <li> 1 <a>Curve (CRV) founder, Michael Egorov, settled $11 Million in debts on Aave, reassuring CRV token holders.&nbsp;</a> </li> 
 <li> 2 <a>Erogov still owes $42.7 Million, backed by $132.5 Million CRV tokens, with lower liquidation risk due to CRV value needing to decrease significantly.&nbsp;</a> </li> 
 <li> 3 <a>Gauntlet previously advised freezing the CRV market on Aave v2.</a> </li> 
</ul> 
Curve (CRV) token holders collectively found some relief as Curve’s founder, Michael Erogov, settled his remaining debts on Aave. In a significant move on September 27, Egorov deposited approximately $11 Million worth of USDT into Aave v2, successfully clearing all the debts he owed to the protocol. This development brought reassurance to CRV token holders. 
Debank reports that, despite his recent repayment to Aave, Erogov still maintains outstanding stablecoin debts totaling $42.7 Million across various lending protocols like Cream, Inverse, Fraxlend, and Silo. It’s worth noting that these loans are presently backed by $132.5 Million worth of CRV tokens. This means that CRV’s value would need to decrease significantly, by approximately two-thirds, before Erogov’s existing positions face the risk of liquidation. 
Back in June, Gauntlet, a risk management firm, raised concerns about Erogov’s loans. Gauntlet recommended that Aave v2 take action by freezing its CRV market and disallowing the token from being used as collateral for new loans within the protocol. 
Although the initial proposal from Gauntlet was initially rejected by AAVE holders, a subsequent proposal gained approval in August. This decision came amid the intensified risks associated with Erogov’s position due to the downturn in the cryptocurrency market. 
Facing the possibility of his loans being liquidated with a 40% drawdown, Curve’s founder, Erogov, initiated the sale of his collateral assets in substantial private transactions starting in early August.&nbsp; 
These transactions involved buyers acquiring significant amounts of CRV tokens, which were subject to a vesting schedule, in exchange for stablecoins. Erogov utilized the proceeds from these sales to decrease his outstanding DeFi debts. 
After the latest sale that took place on September 1, 2023, Erogov sold off more than 174 Million CRV tokens. 
Currently, the CRV token is trading at $0.5188 after losing over 2% of its value in the last 24 hours. However, the Curve Dao Token <a href="https://www.thecoinrepublic.com/2023/09/23/curve-dao-token-price-lifts-off-20-whales-accumulating-at-lows/" target="_blank" rel="noopener noreferrer nofollow">price</a> is up by more than 18% in the last seven days. Yet the existing price is approximately 99% down from its all-time high and initial price of $60 in 2020.&nbsp;

Curve Founder Michael Erogov Seen Paying Down $11 Million in Debts

Thecoinrepublic.com

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