The lending position of Curve founder Michael Egorov is reported to have nearly $140 million worth of CRV close to the liquidation threshold, according to Arkham analysis: if the price of CRV drops by about 10%, these positions may start to be liquidated.
CRV may face liquidation if it drops by 10%, with the $140 million CRV collateralized by Curve founder Michael Egorov at risk
CRV drops by 6.7%
Michael Egorov triggered a liquidation crisis last year
Arkham, an on-chain data analysis platform, tweeted early this morning (13th), indicating that the lending position created by Michael Egorov, the founder of the stablecoin exchange protocol Curve, is valued at $140 million in CRV and is approaching the liquidation threshold again.
Egorov currently borrowed around $95.7 million in stablecoins (mostly crvUSD) using $141 million worth of CRV as collateral in 5 accounts across 5 protocols.
Source: Arkham @ArkhamIntel Twitter
CRV may face liquidation if it drops by 10%, with the $140 million CRV collateralized by Curve founder Michael Egorov at risk
Arkham explained that based on the current interest rates, Egorov needs to pay $60 million annually to maintain his lending position in the Curve lending market, Llamalend.
Currently, Egorov has $50 million in crvUSD loans on Llamalend, with almost no remaining crvUSD available for borrowing against CRV collateral, resulting in an annual interest rate of up to 120%. (Egorov’s 3 accounts have borrowed over 90% of the crvUSD available on the protocol)
In response, Arkham issued a warning:
In terms of coin price, after the CPI was announced last night, CRV briefly surged to $0.3751 at 9 pm, but then started to decline. Earlier today, it dropped to a low of $0.35, with a maximum decline of nearly 6.7%. At the time of writing, it was reported at $0.3508, with a 24-hour decline of about 3.4%.
Source: Trading View
It is worth mentioning that Michael Egorov has often faced the risk of liquidation due to massive borrowing operations using his own CRV tokens, leading to strong criticism from the community and sometimes even causing CRV prices to be targeted by short sellers.
Last year, when Curve was hit hard by a hacker attack at the end of July, triggering a crisis involving Egorov’s massive positions, the Curve founder continued to seek institutions and over-the-counter trades to discount CRV to repay his loans on major DeFi platforms, successfully resolving the Curve crisis.
However, he seems undeterred by liquidation risks. When Curve launched its lending service in February this year, Curve founder Michael Egorov created his own lending position and even taunted:
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