Author: MARTIN YOUNG, COINTELEGRAPH; Translated by: Song Xue, Golden Finance

Curve Finance founder Michael Egorov is trying to sell some of his DeFi positions to reduce his massive debt, but some are concerned about the source of his liquidity.

On August 1, Nansen Research Analyst Sandra Leow published a list of liquidity sources for Egorov’s Curve DAO (CRV) position.

Leow said Egorov sold about 50 million CRV tokens to several buyers at a below-market price of $0.40 per token over the counter. The sale includes a vesting agreement of three to six months, or it could be sold at a price of $0.80.

Other prominent buyers include tech entrepreneur Jeffrey Huang, who was accused by Twitter personality ZachXBT of misappropriating 22,000 Ethereum, currently valued at over $41 million, across multiple projects. Huang has denied the claims and is suing ZachXBT for defamation.

DWF Labs, an investment firm that also engages in market making, also snapped up some discounted tokens.

Others include DeFi lending protocol Cream Finance, “DCFGod,” who is listed as a member of the non-fungible token (NFT) project team, and three other crypto wallets.

Wintermute CEO Evgeny Gaevoy said some of the people and entities Egorov was dealing with were “a bit fishy,” adding that Wintermute did not use Egorov as a counterparty.

The founder of Curve used his own CRV reserves as collateral to apply for a $100 million DeFi stablecoin loan. However, the protocol was exploited on July 30, causing the CRV price to plummet by 30%.

As the price of CRV approaches the liquidation price ($0.362 according to DeFiLlama), there are growing concerns about a DeFi black swan event, as a large amount of CRV could flood into markets with limited liquidity.

However, as part of the debt has been repaid, the token has recovered in the past 24 hours and is trading at $0.597 at the time of writing.

According to Debank, Egorov has repaid more than $17 million in stablecoin loans, slightly improving the health of the loan.

However, the DeFi founder still has huge debts to repay, including $60 million in stablecoins on Aave, $12 million on Abracadabra, and about $8 million on Inverse.

He also has a $9 million loan on Frax, which has some onlookers concerned because of its 85 percent interest rate.