Curve Finance founder Michael Egorov was liquidated today for $140 million of Curve’s native token CRV, according to Arkham Intelligence. Egorov had borrowed nearly $96 million in stablecoins, primarily crvUSD, using his CRV as collateral across five different protocols.

Arkham highlighted that Egorov is paying $60 million in annual interest to maintain his positions on Llamalend, where he had taken over 50% of his loans. The current annual percentage yield (APY) on Llamalend is around 120%.

This high APY is due to the scarcity of crvUSD on the platform, as Egorov had borrowed more than 90% of its stablecoin reserves. Between June 12th and 13th, the price of CRV dropped by 24%, leading to the liquidation of his positions.

As a consequence, Llamalend incurred over $1 million in bad debt, which Egorov managed to cover by selling 30 million CRV tokens to NextGen Digital Venture partner Christianeth for $6 million.

In July 2023, after a hack affected Curve’s factory pools, the price of CRV plummeted, threatening Egorov’s positions. X user Lookonchain reported that Egorov sold a total of 72 million CRV tokens to 15 investors, including DWF Labs, Justin Sun, and Wintermute, on August 3rd, 2023. These over-the-counter (OTC) transactions were made at $0.40 per token, raising almost $29 million to repay on-chain debts.