The DeFi protocol's native token plunged by 28% in a single day due to liquidations stemming from a hack attempt.
Michael Egorov, founder of decentralized finance (DeFi) protocol Curve Finance, claims to have repaid 93% of $10 million in bad debt from the protocol's soft liquidation triggered earlier in the day.
"Size of my positions was too large for markets to handle and caused 10M of bad debt," said Egorov. "I have already repaid 93%, and I intend to repay the rest very shortly."
On June 13, Curve Finance's soft liquidation mechanism successfully managed a real-world test during a recent hacking attempt, but its native CRV token price plunged by over 28% amid the chaos. According to blockchain analytics firm Arkham Intelligence, Egorov himself faced $140 million in liquidations due to "borrowing $95.7M in stablecoins (mostly crvUSD) against $141M in CRV across five accounts on five protocols."
