Michael Egorov, founder of Curve Finance, has announced the full repayment of $10 million in bad debt incurred during a recent hacking attempt. Following the incident on June 13, where Egorov's large positions triggered soft liquidations due to heightened borrowing costs, he reassured the Curve community of his commitment to the platform's stability and growth.

Initially facing $140 million in liquidations due to $95 million in stablecoin debt, Egorov swiftly responded by addressing 93% of the debt promptly after the hack. The situation arose when borrowing costs dramatically increased, leading to the soft liquidation of Egorov's positions. This event also caused a significant drop in Curve's native token, CRV, by 28%.

In response to the crisis, Egorov proposed burning 10% of CRV tokens, valued at $37 million, to stabilize the token's price. Additionally, he offered increased Annual Percentage Yields (APY) as an incentive for voters to support this initiative.

The recent events have sparked renewed scrutiny into the risks associated with Egorov's debt positions within Curve Finance. Concerns initially surfaced in a 2023 report by Delphi Digital, which highlighted potential risks posed by Egorov's substantial loans across various DeFi protocols.

Despite these challenges, Egorov emphasized the effectiveness of Curve's LLAMMA soft liquidation mechanism during the crisis. This mechanism managed to gradually liquidate the hacker's positions through over-the-counter transactions, ensuring minimal impact on Curve's operations and financial stability.

Looking ahead, Egorov remains committed to strengthening Curve Finance, bolstering its resilience against future challenges while maintaining a proactive stance towards community concerns and platform integrity.