Stake DAO

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In a stunning series of events over the past few days, <a href="https://etherscan.io/address/0x7a16ff8270133f063aab6c9977183d9e72835428" rel="noopener noreferrer nofollow">CurveFi</a>&nbsp;founder Michael Egorov has been involved in a flurry of transactions, unloading a massive quantity of CRV tokens. The rapid divestiture has ignited speculation and concern across the <a href="https://u.today/microstrategys-saylor-wants-to-buy-as-much-bitcoin-as-possible" rel="noopener noreferrer nofollow">crypto</a> landscape. 
Egorov sold 3.75 million CRV to Yearn Treasury and 1.25 million CRV to Stake DAO Governance in a span of just three hours. This follows the previous sale of 59.5 million $CRV to 13 institutions/investors for $23.8 million in just two days. 
<img alt="CRV chart" data-entity-type="file" data-entity-uuid="9a8caa11-6d86-4b8c-9a4a-3765e34826d5" src="https://u.today/sites/default/files/inline-images/03082.png">Source: <a href="https://etherscan.io/address/0x7a16ff8270133f063aab6c9977183d9e72835428" rel="noopener noreferrer nofollow">Etherscan</a> 
Egorov also returned a sum of three million USDT on Aave, a decentralized finance protocol. This recent activity coincides with <a href="https://u.today/ethereum-eth-might-be-biggest-victim-of-curve-attack-heres-how" rel="noopener noreferrer nofollow">Egorov's</a> debt accumulation, which currently stands at an alarming $82.6 million, distributed among several DeFi platforms, including Aave, Abracadabra, Fraxlend, Inverse and Silo. 
The urgency behind these sales seems to stem from a move by Abracadabra protocol, one of Egorov's creditors. Abracadabra, also known as Magic Money, has unilaterally proposed to increase the base interest rate on large loans to 200% annually. 
This action would only apply if the loan collateral is twice the amount of the loan, subjecting it to a 5x multiplier. This could potentially force Egorov to return $14.5 million in stablecoins. 
The hefty interest increase by Abracadabra and the potential ramifications have placed Egorov in a precarious position. The swift sales and repayments seem to be a strategic move to mitigate the potential fallout from this sudden change. The Curvefi community is on high alert, anxiously observing unfolding events. 
While it is difficult to predict the long-term impact of these transactions on the Curvefi ecosystem, Egorov's strategic offloading of CRV tokens underscores the importance of staying as liquid as possible while maintaining a huge debt.

Panic or Strategy? CurveFi's Creator Unleashes Torrential Sell-Off

U_Today

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