Curve founder Michael Egorov has sold more Curve (CRV) tokens in over-the-counter transactions with multiple crypto entities, according to blockchain data and a source familiar with the situation.
Blockchain data shows that he sold 5 million CRV to Tron founder Justin Sun, as reported earlier, with a further 4.25 million CRV to crypto trader DCFGod, as noted by DeFi analysts Lookonchain. Plus, 3.75 million CRV to NFT owner Jeffrey Huang — known as Machi Big Brother — 2.5 million CRV to crypto investors DWF Labs, and 2.5 million CRV to DeFi project Cream Finance.
A source told The Block that Mechanism Capital co-founder Andrew Kang and crypto individual Sifu — who was involved in the Quadriga saga — are participating in further OTC sales.
Kang said, “Can’t confirm as of now, still in discussion.” On Twitter, Sifu noted that there was a six month lock up for the tokens but did not address whether he participated.
Blockchain data shows other transactions including a 17.5 million CRV transaction to one wallet, where some of the tokens were transferred to Binance, and a 2.5 million CRV transaction to another wallet that was funded from Wintermute — potentially one of its customers. Lookonchain suggests Egorov has sold a total of 39.25 million CRV and received 15.8 million USDT in return.
Blockchain data indicates that the tokens were sold at $0.40, reflecting the money Egorov sent in exchange. According to the source, the arrangement is a handshake agreement for a three to six-month lockup on the tokens. Alternatively, they can be sold at $0.80 on the open market if the price rises that high.
Concerns over a large loan position
The deals are being made in response to Egorov's large loan position that's at risk of being liquidated if the price of CRV drops considerably. Egorov has been trying to repay some of the debt in order to reduce its risk of being liquidated.
Egorov has borrowed near $60 million in stablecoins on Aave alone, collateralized by a significant $175 million in CRV. If this position were to be liquidated, it could lead to bad debt across multiple lending protocols.
The latest movements are boosting the health of the position. According to DeBank records, this position boasts a health factor of 1.64, up from 1.5 earlier today.
Correction: This article previously said that Wintermute was involved in the OTC deals, per the source. Wintermute CEO Evgeny Gaevoy said that Egorov was not a counterparty.
Disclosure: Wintermute co-founder Evgeny Gaevoy sits on The Block's board.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.