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<a href="https://bitcoinworld.co.in/curve-finance-founder-michael-egorov-suffers-massive-liquidations/" title="Curve Finance Founder Michael Egorov Suffers Massive Liquidations" rel="nofollow"></a>
A sharp decline in the price of CRV has caused Michael Egorov, the founder of <a href="https://bitcoinworld.co.in/curve-finance-rewards-cybersecurity-researcher-marco-croc-with-250000-for-identifying-vulnerability/">Curve Finance</a>, to suffer tens of millions of dollars in liquidations after borrowing nearly $100 million in stablecoins backed by Curve’s governance token. 
Egorov’s CRV holdings have dropped to $34M after previously taking out nearly $100M in stablecoins loans backed by $141M worth of CRV. 
On June 13, Lookonchain, an on-chain analytics team, <a href="https://x.com/lookonchain/status/1801087310819443146">flagged</a> that Egorov’s collateral across four lending protocols had been reduced to just $33.9 million worth of CRV backing $20.6 million in debts after being forced into liquidation. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 The <a href="https://twitter.com/hashtag/Curvefi?src=hash&amp;ref_src=twsrc%5Etfw">#Curvefi</a> founder(Michale Egorov) is being liquidated! 
 He currently has 111.87M <a href="https://twitter.com/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$CRV</a>($33.87M) in collateral and $20.6M in debt on 4 platforms.<a href="https://t.co/WM1nW8JKwU">https://t.co/WM1nW8JKwU</a> <a href="https://t.co/huwgetBXuS">pic.twitter.com/huwgetBXuS</a> 
 — Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1801087310819443146?ref_src=twsrc%5Etfw">June 13, 2024</a>
</blockquote> 
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According to Arkham Intelligence, an on-chain intelligence firm, Egorov previously used $141 million worth of CRV to back $95.7 million worth of stablecoin loans using the DeFi lending protocols Inverse, UwU Lend, Fraxlend, LlamaLend, and Aave. 
On June 12, Arkham noted that $50 million worth of Egorov’s loans were taken out in the form of crvUSD from Llamalend, exhausting the protocol’s crvUSD pool and resulting in annual interest of roughly 120%. Arkham warned that a 10% drop in the price of CRV would place Egorov’s positions in liquidation. 
The price of CRV, Curve’s governance token, has crashed by more than 20% in the past 24 hours, according to CoinGecko, triggering many of Egorov’s positions to enter liquidation. CRV is also down 40% in the past seven days. 
Egorov also suffered a $5 million liquidation on UwU Lend, while Curve’s founder has made repayments on Inverse to stave off further losses. 
The current state of Egorov’s holdings suggests that around 78% of his holdings have been liquidated to pay down his debts so far. 
Curve Lend, a lending protocol launched by Curve Finance, has also been severely hit by the recent CRV drawdown. 
On June 13, Saint Rat, a pseudonymous Curve contributor, <a href="https://x.com/saint_rat/status/1801108887787221206">posted</a> on the X platform that the protocol has incurred $11.5 million worth of bad debt, adding that the debt would be cleared if the price of CRV rises to $0.33. CRV last changed hands for roughly $0.28. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <a href="https://twitter.com/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$CRV</a> isn’t dead 
 We do have $11.5M of bad debt in Curve Lend, but this could clear itself if <a href="https://twitter.com/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$CRV</a> price goes back up through the bands between $0.29-0.33 
 Theoretically if the CRV price got to around $0.40ish everyone would be repaid 
 — Saint (Llama) Rat (@saint_rat) <a href="https://twitter.com/saint_rat/status/1801108887787221206?ref_src=twsrc%5Etfw">June 13, 2024</a>
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<h3 id="span-style-font-weight-400-bad-debt-span">Bad Debt</h3> 
The latest episode is not the first time that Egorov has stared down the barrel at hefty liquidations. Last year, $60 million worth of loans borrowed from Aave by Egorov threatened to leave the protocol with bad debt in the event of liquidation. 
In June, Gauntlet, a risk management firm, recommended that Aave freeze its v2 CRV market to prevent the token from backing new loans and to minimize risks posed to the protocol. A proposal to freeze the CRV market passed in August 2023. 
That same month, Egorov <a href="https://twitter.com/sandraaleow/status/1687361946528653312">sold</a> 106 million CRV for $46 million in private deals to pay down the majority of his debts on Aave and other lending protocols. Egorov closed out his debt to Aave in September with a deposit of $11 million USDT. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Curve Founder sold 106M CRV so far in OTC "handshake" deals, in exchange for $42.4M. <a href="https://t.co/EeXoCc0hB3">pic.twitter.com/EeXoCc0hB3</a> 
 — Sandra (@sandraaleow) <a href="https://twitter.com/sandraaleow/status/1687361946528653312?ref_src=twsrc%5Etfw">August 4, 2023</a>
</blockquote> 
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<blockquote>
 Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Curve Finance Founder Michael Egorov Suffers Massive Liquidations

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