Curve founder Michael Egorov’s 111 million $CRV loan position fell below the liquidation line today, with over 50 million $CRV on the Inverse and UwU Lend platforms being liquidated. This caused the $CRV price to plummet 40% within an hour, hitting a low of $0.2. At the same time, what arbitrage opportunities do we have?
(Previous context: Curve founder’s 140 million pounds of CRV collateral approaching liquidation, Arkham: only 10% drop space left..)
(Background: Whale assists, Curve founder re-collateralizes CRV! Repay Aave’s 70 million pounds of debt)
Table of Contents
Michael Egorov liquidated over 50 million CRV
Analyst: Liquidators may profit over $720,000
Remnants: Whale makes $160,000 in arbitrage
$crvUSD briefly surges 7%, Wintermute makes $630,000 in arbitrage
Morning of the 13th in the dynamic area
Report
The lending position of Curve founder Michael Egorov, worth $140 million in $CRV, has approached the liquidation threshold, resulting in a further drop in CRV price after which Michael Egorov’s lending position was liquidated around 11 a.m. this morning.
Lookonchain
Statistics
show that Michael Egorov’s health factors on Inverse, UwU Lend, Fraxlend, and Curve LlamaLend platforms are all below 1, with over 111 million $CRV (approximately $33.87 million) falling below the liquidation line.
The first to be liquidated was $CRV on the Inverse platform, followed by $CRV on UwU Lend, with over 50 million $CRV currently being liquidated.
At the same time as Michael Egorov’s liquidation, on-chain data shows that the $CRV price dropped to a low of $0.2, plummeting over 40% within an hour. It rebounded slightly before the deadline, with OKX spot prices at $0.279, still down 23% in the last 24 hours. However, smart players also seized this opportunity to profit.
According to community KOL Ai, monitoring on-chain addresses, an address starting with 0xF07 is one of the main liquidators. This address spent 7.55 million FRAX stablecoins at an average price of $0.2549 to liquidate 29.62 million CRV. The $CRV obtained through liquidation has all been deposited into Binance at an average price of $0.2792, which would generate a profit of $720,000 when sold at that price.
However, Ai also noted that if the liquidator prepares a short position on Binance for CRV (or borrows and sells) before liquidation, the obtained CRV is only used to close the short position (or repay), without bearing the profit or loss resulting from the fluctuation of the coin price during the period. Therefore, the $720,000 profit mentioned above is only for reference and could be even higher in reality.
On the other hand, on-chain analyst Remnants observed on-chain activities and found an address that achieved about 10% arbitrage by exploiting the price differences of $CRV on decentralized exchanges and centralized exchanges. They pointed out:
In addition to potential arbitrage opportunities for $CRV, Curve’s own stablecoin $crvUSD also experienced abnormal prices, creating arbitrage opportunities. Ai found that the $crvUSD price surged to $1.07 at 10:30 this morning.
Market maker Wintermute seized the opportunity to sell 9.29 million crvUSD for USDC at an average price of $1.06779, making a profit of about $630,000. These crvUSD were purchased by the institution yesterday morning at an average price of around $0.9984.