Curve founder Michael Egorov was liquidated for over 50 million coins! CRV plunged 40% in one hour

Michael Egorov, the founder of the stablecoin exchange protocol Curve, has a $140 million loan position worth $CRV that is approaching the liquidation threshold. As a result, the price of CRV has fallen further, and Michael Egorov’s loan position has been closed. It was liquidated around 11 o'clock this morning.

Michael Egorov was liquidated for over 50 million CRV

Lookonchain statistics pointed out that Michael Egorov’s health factors on the Inverse, UwU Lend, Fraxlend and Curve LlamaLend platforms were all below 1, falling below the liquidation mark The CRV of the line is as high as 111 million pieces (approximately US$33.87 million).

The first to be liquidated was $CRV on the Inverse platform, followed by $CRV on UwU Lend. Currently, more than 50 million $CRV have been liquidated.

At the same time that Michael Egorov was liquidated, the price of on-chain data $CRV dropped to as low as $0.2, falling by more than 40% in one hour. There was a slight rebound before the deadline, with OKX spot trading at $0.279, still down 23% in the past 24 hours; but at the same time, smart players also seized this opportunity to make profits.

Analyst: The liquidator may profit more than 720,000 US dollars

According to the address on the monitoring chain of the community KOLAi, the address starting with 0xF07 is one of the main liquidators. This address spent a total of 7.55 million stablecoin FRAX and liquidated 29.62 million CRV at an average price of $0.2549. At present, all the $CRV obtained by this address through liquidation have been deposited into Binance, and the average deposit price is $0.2792. If sold at this price, it will Profit of US$720,000.

However, Aunt Ai also added that if the liquidator first opens a CRV short order (or borrows currency to sell) on Binance and then liquidates, the CRV obtained from the liquidation will only be used to close the short position (or repay the loan) ) without having to bear the profits and losses caused by currency price fluctuations during the period. Therefore, the above-mentioned profit of US$720,000 is only for reference, and it may actually be more.

Ember: Giant Whale Arbitrage $160,000

On the other hand, on-chain analyst Ember monitored on-chain activities and found that a certain address used on-chain Dex and centralized exchange $CRV price difference, achieving an arbitrage of about 10%. He pointed out: Affected by the liquidation of the loan position of Curve founder Michael Egorov, the price of CRV on the chain is lower than that of CEX. A whale withdrew 1.5 million USDT from Binance to buy 6.313 million CRV on the chain at an average price of $0.237, and then transferred it to Binance at a price of $0.263. If sold at this price, a profit of $160,000 (10%) will be made.

$crvUSD once soared 7%, and Wintermute arbitraged $630,000

In addition to potential arbitrage opportunities in $CRV, Curve’s own stablecoin $crvUSD also once experienced an abnormal price, so there is arbitrage Chance. Aunt Ai discovered that the price of $crvUSD rose to a maximum of $1.07 at 10:30 this morning.

Market maker Wintermute seized the opportunity to sell 9.29 million crvUSD into USDC at an average price of $1.06779, making a profit of approximately $630,000. This part of crvUSD was bought by the institution yesterday morning, with an average price of about $0.9984.

The above is the detailed content of Curve founder Michael Egorov was liquidated for over 50 million coins! CRV plunged 40% in one hour. For more information, please follow other related articles on the PHP Chinese website!