Curve Founder Michael Egorov Completes Aave Debt Repayment: Data

As per insightful analysis from Lookonchain, Michael Egorov, the founder of Curve DeFi network, has fully completed the payment of his remaining debt associated with DeFi lending protocol Aave.

Egorov’s debt repayment spree was triggered by liquidation risks last month when CRV tokens plunged in value following a massive network exploit.

Egorov Settling Debts

As per Lookonchain, Egororv settled the debt by depositing 68 million CRV ($35.3 million) into Silo, a non-custodial lending protocol. The cryptocurrency influencer then borrowed 10.8 million crvUSD from Curve over two days, converted it into Tether’s USDT stablecoin, and promptly repaid the entire debt on Aave.

Michael Egorov deposited 68M $CRV ($35.5M) to #Silo and borrowed 10.77M $crvUSD in the past 2 days.

Then swapped $crvUSD for $USDT and repaid the all debt on #Aave.

He currently has 253.67M $CRV($132.52M) in collateral and $42.7M in debt on 4 platforms. pic.twitter.com/oBQ4yiT9Xs

— Lookonchain (@lookonchain) September 27, 2023

Interestingly, reports indicate that following the deposits onto Silo, the network’s TVL reached an all-time high of $60 million.

According to Lookonchain, even though Egorov paid the Aave debt, he still holds a considerable debt, about $42.7 million, in four DeFi networks. This includes a 17.1 million crvUSD debt on Silo, a 13.1 million FRAX debt on Fraxlend, a 10 million DOLA debt on Inverse, and a $2.5 million combined USDC and USDT debt on Cream.

However, in the case of the pending debt, Egorov holds about 253.7 million CRV, roughly $132 million as collateral.

The repayments by Egorov have been the latest in the series of such activities done by Egorov since August.

Analysis reveals that Egorov conducted token sale activities and transactions in collaboration with Wintermute, a prominent trading firm, Justin Sun, the founder of Tron, and Jeffrey Huang, a notable investor in NFTs.

Curve’s July Exploit Stirred Fear

Most of Egorov’s transactional activities in the past few weeks have been driven by a fear of prices plunging following the recent network exploit. In the security breach caused by a programming bug, several stable pools leveraging Vyper 0.2.15 were exploited due to a malfunctioning reentrancy lock.

Following the exploit, CRV tokens plunged to $0.5 in days, an over 30% drop, leading to liquidation risks on millions of Egorov’s debt positions. As such, Egorov began a series of trades, including OTC.

At the time, he sold 106 million of CRV for $46 million earlier last month in a bid to mitigate potential liquidation risks that came with his substantial debt across multiple DeFi platforms.

Egorov’s activities have, however, caused some minor market crashes in recent weeks. As per reports, Curve DAO Tokens dove below $0.4 earlier in September following huge OTC token purchases, transferred to Binance and then returned after a few hours.

When writing this report, CRV is trading at $0.52, a robust 3.6% increase in the past 24 hours and a 16% surge in the past four weeks.