Do you need OTC to raise money to repay the loan? Curve founder CRV liquidation crisis reappears, lending health rate as low as 1.1

This site (120btC.coM): Seeing the recent correction in the crypto market, the health of lending users on various chains has also been put into crisis, and Curve founder Michael Egorov is also on the list . On-chain analyst Ember discovered that Egorov’s lending positions worth more than $90 million are once again on the verge of liquidation, with some positions having a health score as low as 1.1.

CRV liquidation crisis reappears?

As the price of Bitcoin once fell to US$60,000, various alternative coins also experienced a decline of 10% to 30% in two days; among them, Curve (CRV) fell as much as 39% in three days. At the time of writing, the decline narrowed to about 26%.

Ember tweeted that due to the sharp drop in CRV price, Curve founder Michael Egorov’s lending position has once again entered a dangerous state: As the CRV price reached $0.42, Egorov’s lending on multiple platforms The health rate has dropped to a dangerous level of about 1.1.

According to his statistics, Egorov mortgaged a total of 371 million CRV through 5 addresses on 6 lending platforms, and lent a total of US$92.54 million in stable coins.

At a Glance Michael Egorov’s Loan Status

Chain News compiled Michael Egorov’s loan status on various protocols. Even after Ember’s tweet, Egorov did replenish collateral or repay the loan. to avoid liquidation.

However, there are still 3 platforms with loan health scores lower than 1.2, which are quite dangerous in the current extremely volatile market; once they face a drop of about 20% again, they may incur value losses. Massive liquidation of tens of millions of dollars.

Ember expressed concern about this, emphasizing that Egorov will need to make a choice: if it is not to sell CRV through OTC to repay the loan as before; or to stabilize the previously lent currency, partially transferred back to repay the loan.

And added, "Or don't take action for the time being, betting that the market will not continue to fall."

Reviewing the previous liquidation crisis, Egorov OTC raising money

In August last year, Curve Finance was attacked by a vulnerability. In addition to losing more than 70 million U.S. dollars, its token $CRV also fell 24% in two days, which almost caused Michael Egorov's positions in various lending protocols to be liquidated continuously, causing ripples to the entire DeFi ecosystem. serious crisis.

At that time, Egorov had a total debt of up to 110 million US dollars, with more than 427.5 million CRV mortgaged, accounting for nearly half of the circulating supply.

It was not until the following days that Egorov sought out 33 institutional and individual investors and sold a large number of CRV tokens over the counter OTC to pay off its own debts, and the financial situation gradually returned to health.

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