Details of how Michael Egorov the Founder of a Decentralized Finance Protocol is on the Verge of Losing Millions in Futures Trading

Founder of Curve Finance, Michael Egorov, is facing a significant risk of liquidation as the price of the Curve DAO (CRV) token has plummeted by more than 25% in the past 24 hours. Egorov currently holds a substantial amount of on-chain credit, with 111.87 million CRV tokens valued at $33.87 million used as collateral against $20.6 million in debt spread across four platforms. Blockchain intelligence firm Arkham had previously estimated that Egorov’s CRV positions, valued at around $140 million, were nearing liquidation. Egorov reportedly spent $60 million annually to maintain his positions in LlamaLend, and a 10% drop in the CRV value could trigger liquidation. Earlier today, Egorov faced liquidation on Inverse but took swift action to mitigate the risk. On-chain data indicates that Egorov has started repaying the stablecoin DOLA he borrowed to decrease his risk exposure. His ongoing efforts to manage debt and minimize liquidation risks highlight the volatility and challenges present in the decentralized finance (DeFi) sector. The recent sharp decline in CRV’s price serves as a stark reminder of the dangers of leveraging crypto assets for secured loans. This story is a cautionary tale and not investment advice. To trade in over 300 cryptocurrencies, you can sign up with Binance exchange and receive a 20% commission discount. Stay updated with exclusive news, analytics, and on-chain data by following our Telegram and Twitter accounts.