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Curve Finance founder cuts debt to $42.7M, settles entire Aave loan

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 94 Views

Curve Finance founder Michael Egorov still has a debt of $42.7 million across four protocols, including Silo, Fraxlend, Inverse and Cream.

Michael Egorov, the founder of decentralized finance (DeFi) protocol Curve, recently settled his loans on the lending platform Aave, reducing his debt to $42.7 million across other DeFi protocols. 

According to the on-chain analytics platform Lookonchain, the Curve founder deposited 68 million CRV tokens, worth $35.5 million, to lending protocol Silo and borrowed 10.77 million in crvUSD stablecoin in the last two days. Following this, Egorov swapped the crvUSD into Tether (USDT) and paid all his debt on Aave. 

According to Lookonchain, the Curve Finance founder currently has a total of 253.67 million CRV tokens in collateral and has a remaining debt of $42.7 million across four protocols, including Silo, Fraxlend, Inverse and Cream. 

On Aug. 1, Egorov made headlines for his $100 million DeFi debt, as reports showed that further drops in the price of Curve DAO (CRV) tokens could potentially trigger liquidations and cause a DeFi implosion. Seeing the risks, the Curve founder made some moves to lower his debt and utilization rate back then.

Related: Curve Finance pools exploited by over $47M due to reentrancy vulnerability

At the time, the prices of CRV tokens dropped as the protocol suffered a $47 million hack due to a reentrancy vulnerability. On July 30, several stable pools on Curve were exploited because of vulnerabilities in the Vyper programming language. According to Curve, reentrancy locks malfunctioned and the pools were breached. The price of CRV tokens fell from $0.73 on July 30 to $0.50 on Aug. 1.

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