The recent market downturn has had far-reaching consequences, with the price of CRV, Curve Finance’s native token, plunging to $0.42. This drop has significant implications for Curve founder Michael Egorov’s lending position, which has again crossed into precarious territory. The past two days witnessed a sharp decline in the market, dragging the price of CRV down to $0.42. As a result, Michael Egorov’s lending position, which relies on the value of CRV as collateral, finds itself in a vulnerable position again.
Founder’s Lending Position
Michael Egorov holds five addresses with a combined pledge of 371 million CRV, equivalent to $156 million. These assets are spread across six lending platforms, where he has lent out a substantial $92.54 million in stablecoins. However, the recent drop in CRV prices has triggered concerns as multiple lending positions hover around a precarious health rate of approximately 1.1.
This isn’t the first time Michael has faced such a dilemma. In August of last year, amidst a similar market downturn, he resorted to selling 159.4 million CRV in an over-the-counter (OTC) transaction. This move, executed for $0.4 per token, fetched him 63.76 million U stablecoins, which were promptly used to repay loans and stave off liquidation.
With his borrowing position again in the red, Michael ponders his next move. Should he opt for another round of OTC sales to repay loans and mitigate risks, or consider transferring previously borrowed stablecoins to address the debt? Alternatively, he may hold steady, betting on a market rebound to salvage the situation.
