Michael Egorov, the founder of Curve Finance, is facing a liquidity crisis after a significant portion of his assets were liquidated. This development comes as the Curve DAO token price plummeted by 25% in the last 24 hours, trading at $0.262.

Egorov's Financial Situation

According to Lookonchain data, Egorov has collateral worth $33.87 million in CRV tokens, but owes $20.6 million across four DeFi platforms. He used CRV tokens as collateral to borrow stablecoins from Inverse, UwU Lend, Fraxlend, and LlamaLend. However, his positions are now underwater, with a health ratio of 1.07, putting him at risk of further liquidation.

Mitigating Risks

Egorov has started repaying the borrowed DOLA stablecoin, but his loan from UwU Lend remains underwater. Arkham, a blockchain data analysis firm, predicted that Egorov's positions were at risk of liquidation, estimating that a 10% drop in CRV's value would trigger liquidation. To mitigate risks, Egorov sold 106 million CRV tokens for $46 million in August 2023.

Conclusion

In conclusion, Michael Egorov is facing financial pressure due to the liquidity crisis. The recent hack attack on Curve has deepened the crisis, and Egorov's situation highlights the risks associated with DeFi platforms. As the market continues to fluctuate, Egorov's financial situation remains uncertain, and the consequences of this crisis may have far-reaching implications for the blockchain industry.