Curve Finance founder gets liquidated amid sharp drop in CRV token price

Michael Egorov, the founder of Curve Finance had his on-chain loan positions liquidated earlier on Thursday.

The price of Curve DAO (CRV), the token linked to the decentralized exchange, has fallen over 25% in the past 24 hours to trade at $0.262 at the time of writing, according to The Block’s price page.

Egorov was liquidated for $140 million in CRV across his loan positions in various protocols, Arkham Intelligence noted.

Egorov had borrowed various stablecoins from DeFi platforms Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend using CRV tokens as collateral.

Earlier today, Egorov had started to get liquidated on Inverse but then measures to mitigate further risks. Egorov’s position on Inverse currently has a health rate of 1.07 at the time of writing, where liquidation is typically triggered when the number reaches one. Egorov has begun repaying the borrowed stablecoin DOLA, on-chain data shows.

Around 3 a.m. eastern time on Thursday, Egorov’s loan positions for USDT and DAI stablecoin on UwU Lend saw additional liquidations worth over $5 million, according to DeBank. This effectively brought his health rate on UwU up to 1.08.

Arkham had previously forecasted earlier on Wednesday that Egorov’s CRV positions worth $140 million were nearing liquidation, adding that the Curve founder is paying 120% in annualized rates to maintain his positions on LlamaLend.

CRV price chart | Source: The Block (via TradingView data)

The blockchain intelligence firm predicted that a drop in CRV’s value of around 10% would trigger Egorov’s positions to be liquidated.

In August 2023, Egorov sold 106 million CRV for $46 million in deals to reduce potential liquidation risks associated with his outstanding debt across various DeFi platforms, including Aave. 

The article was updated with further details.