Curve token CRV liquidation can be disastrous 😳
Curve Finance founder Michael Egorov turns to notable counterparties to bail out his DeFi positions. The CRV price is $0.562 (↓7.5%), if the price hits $0.375, more than $100 million in liquidations will happen on Aave Egorov's position.
Liquidations can often lead to tremendous selling pressure. In the case of Egorov’s CRV position, the liquidations could result in bad debt for multiple projects due to the deficit of CRV liquidity ☠️
Simply put, it's in everyone's interest for Egorov not to be liquidated. DeFi protocols are trying to get rid of CRV exposure and are raising interest rates.
🤝 Michael Egorov is doing his part and trying to repay the loans while maintaining the market price. Egorov sold 54.5 million CRV tokens to nearly a dozen OTC buyers.
Tokens are sold at a rate of $0.40 per token, well below market price with a 6-month lockup. Some of the buyers are very questionable, for example, one of them is convicted felon Michael Patryn (0xSifu) 🤨
