Viewpoint: Curve founder deposited 290 million CRV in Aave and borrowed $71 million in stablecoins, which is a huge risk for both ecosystems

dForce founder Yang Mindao posted on Twitter that the founder of Curve has deposited more than 33% of CRV's circulating tokens in Aave and borrowed $71 million in stablecoins, which is a huge risk to the Curve ecosystem and Aave. As the market falls and liquidity shrinks, the risk is increasing. Aave V2 has no deposit limit, which makes it impossible to control the collateral exposure. The only thing that can be done is to increase the USDT borrowing cost. Pledging Curve's native tokens for leverage seems to be a reluctance to sell, but in fact it is an inducement to short.
Earlier on June 10, according to Lookonchain monitoring, due to a 16% drop in CRV prices, the founder of Curve deposited 38 million CRV (US$24.5 million) into Aave, raising its health rate to 1.52. He has deposited a total of 290 million CRV (US$187 million) into Aave and borrowed US$71 million in stablecoins. (Planet Daily)