🚨HOT NEWS 📈

Yesterday, @newmichwill collateralized 37.7M $CRV to borrow 6.3M $crvUSD on Silo, then swapped to $USDT to repay @AaveAave. From our personal perspective, this may be how he enhances his own stable coin value. 🤔

1️⃣ Phase 1: He partnered with @SiloFinance to launch $crvUSD farming program (with 10% bonus rewards) on 18 Sep. Result: Demand for $crvUSD ownership among users increased.

2️⃣Phase 2: Collateralize #CRV to borrow $crvUSD supplied by the users mentioned above.

3️⃣Phase 3: Swap $crvUSD => $USDT (a proven stablecoin) and repay existing @AaveAave loans.

4️⃣This leads to possible next phases. Phase 4: He may reduce additional rewards for $crvUSD on @SiloFinance. Users then may seek high APR farming elsewhere, reducing $crvUSD demand and risking its peg decrease

5️⃣Phase 5: He can use $USDT to buy back $crvUSD at a lower price. Aiming to maintain $crvUSD peg and repay @SiloFinance

☝️Above are what we think how it will proceed. Got any thoughts on this strategy? Share them here in this post! 😉

$USDC $CRV