Curve\u2019s founder suffered an enormous CRV liquidation after borrowing $95.7 million worth of stablecoins against the asset.<\/p>\n
Michael Egorov, the founder of Curve Finance, claims to be more committed to building Curve than ever despite having an enormous stash of CRV liquidated in recent days.<\/p>\n
On June 13, Egorov revealed he is now predominantly exposed to CRV through vote-escrow (ve) CRV tokens, motivating him to work towards the project\u2019s development through game theory incentives. The comments come after Egorov lost more than 100 million regular CRV tokens to margin calls<\/p>\n
\u201cIn case anyone is wondering, I am committed to building Curve more than ever, thanks to game-theoretical implications of veTokenomics (mostly have veCRV now),\u201d Egorov tweeted<\/a>.<\/p>\n Curve\u2019s founder added that he plans to work towards ensuring that the protocol’s lending and borrowing products are \u201cthe safest in the industry,\u201d educating arbitrage traders on how to execute orderly liquidations, and designing mechanisms incentivizing users to deposit crvUSD \u2014 Curve\u2019s native stablecoin \u2014 into the protocol.<\/p>\n VE tokens are non-transferable assets issued in exchange for locking up a project\u2019s governance power. VE-tokenholders receive governance power proportional to the time duration that their tokens are locked up for, allowing them to vote on how new token emissions are allocated.<\/p>\n This mechanism famously gave rise to the \u201cCurve Wars<\/a>\u201d in 2021, where DeFi protocols competed to allocate CRV rewards to Curve liquidity pools for their respective assets, in turn attracting liquidity from liquidity providers (LPs).<\/p>\n On June 12, Arkham Intelligence, an on-chain intelligence platform, flagged<\/a> that Egorov would soon face liquidation should the price of CRV fall another 10% after posting heavy losses over the preceding week. Arkham said Egorov had previously taken out $95.7 million worth of stablecoin loans backed by $141 million worth of CRV.<\/p>\n On June 13, Lookonchain, an on-chain analytics provider, posted<\/a> that Egorov\u2019s positions had entered liquidation<\/a> after a further 20% decline in the price of CRV over 24 hours. Lookonchain said Egorov\u2019s positions had been reduced to just $33.9 million worth of CRV backing $20.6 million worth of loans.<\/p>\n The price of CRV is currently down 36% in seven days, but bounced 14% in the past 24 hours following Egorov\u2019s liquidation. CRV is also down 66% since mid-March.<\/p>\n However, despite suffering a massive liquidation, many onlookers believe Egorov was not adversely affected by the margin calls.<\/p>\n \u201cMichael did not get \u2018rekt\u2019 by being liquidated on his CRV,\u201d tweeted<\/a> Eric Conner, an Ethereum developer. \u201cHe got $100mn in stables out of a $140mn CRV position. Selling it on market would have resulted in similar prices and a pissed community.\u201d<\/p>\n \u201cHe just transferred the rektage to the community instead,\u201d replied<\/a> Anthony Sassano, the host of The Daily Gwei podcast.<\/p>\n Lookonchain posted<\/a> that Egorov had \u201calready cashed out and bought a mansion in 2023.\u201d<\/p>\n Lookonchain shared on-chain records showing that Egorov transferred $31 million<\/a> in borrowed USDT to the Bitfinex centralized exchange in April 2023. One month later, the Australian Financial Review reported<\/a> that Egorov\u2019s wife had purchased a $41 million mansion in Melbourne, with the property situated next door to a home they had purchased for $18.25 million one year prior.<\/p>\nVE tokenomics<\/h2>\n
Liquidated, but not rekt?<\/h2>\n