Curve DAO Founder Faces Liquidation Amid CRV Price Plunge
CRV
- CRV balances on exchanges hit a record high amid massive whale deposits.
- Frax Finance reports no bad debt due to effective liquidation strategies.
- CRV price plummets, raising concerns of cascading liquidations.
The Curve DAO (CRV) ecosystem is witnessing turmoil as its founder, Michael Egorov, faces potential liquidation. With $141M in CRV as collateral and $95.7M in stablecoin loans, Egorov's positions are at risk. The situation is exacerbated by a sharp decline in CRV's price, leading to increased liquidations and a record high of CRV balances on exchanges.
Michael Egorov, the founder of Curve DAO, is currently in a precarious position as reported by onchain data firm Arkham. He has $141 million in CRV as collateral and $95.7 million in loans, primarily in stablecoins. These loans are spread across five accounts on five different protocols.
Besides, Arkham notes that he is paying $60 million annually to maintain his positions on Llamalend. However, the declining CRV price has intensified the risk of liquidation. If the price continues to fall, Egorov could face cascading liquidations, further impacting CRV's market value.
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