The founder of Curve Finance, Michael Egorov, experienced liquidation on several multi-million dollar positions, causing a significant decline in the price of the CRV token. The token’s price plummeted by 25% on June 13, with losses reaching up to 30% at one point. As of press time, CRV is trading at an all-time low of $0.25, according to data from CoinGecko.
The Liquidation Event
Michael Egorov’s liquidations were due to high-stake positions backed by CRV as collateral. According to Lookonchain, Egorov has over 111 million CRV tokens used as collateral and more than $20 million in debt across several platforms, including Inverse, Frax Finance, and UwU Lend.
In response to CRV’s sharp decline, Frax Finance stated in an X post that “there is zero bad debt on Fraxlend due to our partial liquidation, DDR, isolated lending design.” Data from blockchain forensics firm Arkham Intelligence indicates that three of Egorov’s accounts constitute over 90% of the borrowed crvUSD on the protocol.
Market Reaction
Centralized cryptocurrency exchanges are seeing a surge in CRV deposits, with their CRV balances reaching an all-time high, increasing by 57%, as noted by CryptoQuant’s founder Ki Young Ju.
Curve Finance, founded in 2020, raised millions from its backers to facilitate efficient stablecoin trading through its automated market maker platform. The project was backed by notable investors, including Binance Labs, Platinum Capital VC, WhiteBlock Ventures, and Cluster Capital, according to data from PitchBook.
