Curve Finance founder Michael Egorov has been liquidated on several positions and faces further liquidation risk as the $CRV price drops sharply.
CRV is down 20% in the last 24 hours and recently hit an all-time low of $0.239. The sharp drop places Egorov’s loan positions in a precarious situation.
Curve Finance Founder Loan Positions Liquidated
Egorov borrowed from decentralized finance (DeFi) platforms such as Inverse, Fraxlend, LlamaLend, and Uwu Lend. He took loan positions on these platforms using Curve Finance’s native token, $CRV, as collateral.
Data from Lookonchain shows that Egorov had a $20.6M debt across the four DeFi platforms. He also used 111.87 million CRV tokens, worth around $33 million, as collateral.
Data from DeBank shows that Egorov is already paying off his loan at Inverse. However, he is still being liquidated on UwU Lend. Over $20 million has been liquidated on Egorov’s position on UwU Lend, according to DeBank.
Arkham Intelligence had earlier predicted that Egorov’s positions were nearing liquidation. He had borrowed $50 million on Llamalend at a 120% APY. The high interest rate follows the lack of adequate crvUSD needed to borrow against CRV.
The events also affect other market participants. Another trader got liquidated for 10.58M $CRV, worth $3.3 million, on Fraxlend.
It is not the first time that Egorov is facing a liquidation risk. Last year, he was forced to sell 106 million $CRV at $46 million to reduce a liquidation risk. At the time, he had loan positions across multiple DeFi platforms, including Aave.
Over 99% of CRV Holders Face Unrealized Losses
CRV Price continues to drop lower. It was trading at $0.277 as of 05:16 EST after a 20% drop. The token hit an all-time low of $0.239 on June 13 before bouncing slightly as some traders buy the dip.
A post by Lookonchain shows that one trader purchased $300,000 worth of CRV tokens at a low price of $0.218. However, dip buying is little to buoy investor confidence.
The Relative Strength Index at 23 indicates selling behavior. The RSI line is also tipping south, an indicator that selling pressure remains high. As such, CRV will likely continue trading at the low price and possibly drop lower despite attempts at dip buying.
Data from CryptoQuant also showed that the $CRV token balance on exchanges is at an all-time high, with traders getting ready to sell and mitigate losses.
Any trader selling at the current price is doing so at a loss, with data from IntoTheBlock showing that 99% of addresses are sitting at unrealized losses (Out of the Money). Only a handful of wallet addresses are at a profit.
Despite the ongoing bearish momentum, CRV is showing signs of recovery. The token has bounced by 17% in the last six hours.
