• Curve founder Michael Egorov has repaid 1.35 million USDT of an Aave loan to reduce liquidation risk.
• The loan was collateralized with CRV tokens, which have significantly declined in the past week.
• Egorov also sent $37.7 million USDT and $51 million USDC to Bitfinex and Wintermute Trading, respectively.
Curve Founder Repays 1.3M USDT Loan
The Curve-Aave loan fiasco caused USDT to slip slightly from its 1:1 peg with the USD. A wallet linked to Michael Egorov, the founder of decentralized exchange (DEX) and automated market maker protocol Curve, has reduced its on-chain debt by repaying 1.35 million USDT of a loan on the decentralized lending platform, Aave.
CRV Decline Increases Liquidation Risk
Egorov’s move comes as Curve’s native token (CRV), used as the loan’s collateral, significantly declined in the past week, reducing the loan’s health factor and increasing the liquidation risk. Data from blockchain analytics platform Debank shows that the Curve founder has deposited 288.7 million CRV tokens worth $173 million on Aave to borrow about 64 million USDT in an open position. The CRV tokens represent roughly 34% of the asset’s total supply. Analysis from blockchain sleuth Lookonchain revealed that Egorov sent $37