Curve Finance founder Michael Egorov has successfully settled his outstanding debt position on the decentralized lending platform Aave, as indicated by on-chain data observed by web3 data analytics provider Lookonchain.
Currently, Egorov maintains a collateral of 253.7 million CRV, equivalent to $132 million. This collateral is utilized to secure remaining debt positions totaling $42.7 million across four other DeFi protocols.
Curve’s debt troubles far from over
Egorov made a deposit of 68 million CRV $35.3 million into the non-custodial lending protocol Silo to repay the Aave debt. Subsequently, he borrowed 10.8 million of Curve’s decentralized stablecoin, crvUSD, over the past two days, as reported by Lookonchain on X.
Egorov then conducted a swap, converting crvUSD into Tether’s USDT stablecoin, ultimately using it to repay his outstanding debt position on Aave fully.
While the Aave debt is fully paid, Egorov still owes 17.1 million crvUSD (amounting to $17.1 million) on Silo, 13.1 million FRAX (equivalent to $13.1 million) on Fraxlend, 10 million DOLA (equal to $10 million) on Inverse, along with $2.5 million in USDC and USDT debt on Cream.
In August, Egorov took measures to mitigate potential liquidation risks linked to his outstanding debt across various DeFi platforms, including Aave. To achieve this, he executed deals to sell 106 million CRV tokens, yielding $46 million in proceeds.
Egorov’s efforts to reduce his debt included the sale of CRV tokens for stablecoins. Notable buyers in these token sales included crypto trading firm Wintermute, Tron founder Justin Sun, and NFT investor Jeffrey Huang (Machi Big Brother). The largest OTC deal, involving the purchase of 17.5 million CRV tokens, was secured by an anonymous entity. These OTC sales followed a 30% decline in the price of CRV to $0.50, prompted by a security exploit that impacted multiple Curve Finance liquidity pools in July.
Meanwhile, Egorov was recently cleared by a California judge in a $1 million crypto fraud lawsuit.
