Curve Finance founder pays off Aave loan, still owes $42.7M

Michael Egorov, the founder of Curve Finance, still owes a significant amount of money to four different protocols. According to the data, Egorov owes a total of $42.7 million to Silo, Fraxlend, Inverse, and Cream.

While Egorov, the founder of Curve, has reduced his debt to $42.7 million by repaying his loans on Aave, he still has a significant amount of debt with other DeFi protocols.

Over two days, Michael deposited $35.5 million worth of CRV tokens into the Silo protocol and borrowed $10.77 million in crvUSD, which he then used to pay off his debt on Aave. Lookonchain’s data shows that he then swapped the crvUSD for Tether and used it to settle his outstanding debt.

According to Lookonchain, the founder of Curve Finance, currently holds a total of 253.67 million CRV tokens as collateral. This collateral is spread across four different protocols, including Silo, Fraxlend, Inverse, and Cream. He also has outstanding debts amounting to $42.7 million.

Michael Egorov deposited 68M $CRV ($35.5M) to #Silo and borrowed 10.77M $crvUSD in the past 2 days.

Then swapped $crvUSD for $USDT and repaid the all debt on #Aave.

He currently has 253.67M $CRV($132.52M) in collateral and $42.7M in debt on 4 platforms.https://t.co/stkFvDrlnv pic.twitter.com/oBQ4yiT9Xs

— Lookonchain (@lookonchain) September 27, 2023

On August 1, 2022, Egorov made headlines for having a DeFi debt of $100 million. This was of concern because further declines in the price of CRV tokens could potentially result in liquidations and a chain reaction of events that could lead to a DeFi implosion. In light of these risks, the Curve founder took action to reduce his debt and utilization rate.

Amid Egorov’s DeFi debt crisis, Curve’s native token CRV was hit by another wave of bad news when a reentrancy vulnerability was exploited in several of the protocol’s stablecoin pools. This vulnerability was caused by a bug in the Vyper programming language, which allowed attackers to steal $47 million worth of assets. 

The attack on Curve caused the price of CRV to drop from $0.73 on July 30 to $0.50 on August 1, further increasing the risks to his debt position.

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