Aave DAO approves $2 million purchase of Curve tokens in OTC deal

Quick Take

  • Aave’s decentralized autonomous organization approved a governance vote to purchase $2 million in Curve tokens.
  • The decision was supported by 57% of the votes in the DAO’s governance process.

The decentralized autonomous organization responsible for Aave’s lending protocol has approved a governance decision to buy $2 million worth of Curve tokens.

The purchase will be made using USDT from the Aave DAO treasury and will be conducted through an over-the-counter transaction with Michael Egorov, the founder of Curve Finance.

The proposal, presented by Aave Chan Initiative founder Marc Zeller, gained approval with 57% of the votes in favor, allowing Aave DAO to acquire the tokens. According to the proposal, the acquired tokens will be staked on Curve Finance to improve liquidity for Aave’s stablecoin GHO on the platform.

The planned staking of the tokens will give Aave voting rights on the Curve platform, one of the largest decentralized exchanges. The action will enable Aave to exert influence over the distribution of token rewards and governance on the platform, including the allocation of new CRV rewards to designated liquidity pools.

“These tokens can be mobilized to incentivize GHO liquidity via locking them to gather Curve voting power and support a GHO-specific gauge,” the proposal said.


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The Aave community’s decision to buy Curve tokens is likely part of a string of recent over-the-counter transactions undertaken by Michael Egorov with notable individuals in the cryptocurrency sector. Among these, Huobi’s co-founder Jun Du acquired 10 million CRV tokens, while Tron’s founder Justin Sun bought 5 million CRV at a cost of $2 million. Crypto exchange Binance also committed a $5 million investment in Curve tokens.

Recent OTC transactions by Michael Egorov

Egorov has been engaging in several over-the-counter transactions, selling substantial quantities of Curve tokens. The action is aimed at alleviating his considerable loan obligations, which amount to roughly $47 million against a significant portion of the CRV supply spread across different DeFi protocols. Within this context, Aave stands as a major creditor, with Egorov’s debt to the project estimated at $20 million.

On-chain data aggregated by Spotonchain on Dune Analytics shows that Egorov has sold over 157.5 million CRV tokens to date, cumulatively amounting to $47.4 million.

© 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.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]


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