The last time Michael Egorov faced the risk of liquidation was in mid-April with 371 million CRV Token . This time it is worth 350 million CRV (equivalent to 122.5 million USD).
Curve founder once again faces the risk of being liquidated for 350 million CRV
In the past two days, the crypto market has seen a major "sell-off" that resulted in the liquidation of more than $260 million in leveraged positions.
The selling pressure comes not only from users, but also from US Bitcoin spot ETFs, which for the second consecutive day recorded outflows with a value of up to 200 million USD, led by Grayscale's GBTC fund.
Not only are Longing orders on centralized exchanges (CEX) being scanned en masse, but the risk of "account burning" also comes to orders on DEXs and lending platforms.
Notably, every time the crypto market has a sharp downward adjustment, Curve founder Michael Egorov "attracts" all eyes with the risk of liquidating his CRV mortgage position to borrow his stablecoin.
The last time Michael Egorov faced the risk of liquidation was in mid-April with 371 million CRV Token , equivalent to 156 million USD . The upcoming liquidation is worth 350 million CRV (equivalent to 122.5 million USD).
If $ CRV drops 5% to .342 a total of up to 350M CRV and 90M$ in loans becomes at risk of liquidation. pic.twitter.com/uPnZ6t75sp
— USD Denominated (@YouAreMyYield) June 12, 2024
According to an account specializing in DeFi analysis "USD Denominated", Mr. Michael Egorov currently owns 8 CRV asset mortgage wallet addresses on 4 lending platforms Fraxlend, Silo, LlamaLend, Inverse.
In total, the head of Curve pledged 351.2 million CRV Token , equivalent to $122.5 million , to borrow $90.8 million in stablecoins , with the first liquidation order to be triggered when the CRV price hits 0.342 USD.
With the Curve Token price at the time of writing currently trading around 0.36 USD, it means that if CRV drops another 5% without adding additional collateral, the first liquidation order is worth 50.2 million CRV will be activated.
If CRV price continues to "negatively" move down another 15% to around 0.295 USD , all 350 million CRV worth 122.5 million USD will be liquidated.
4h chart of CRV/ USDT pair on Binance at 06:25 PM June 12, 2024
"Unluckily", Michael Patryn - co-founder of the collapsed Canadian cryptocurrency exchange QuadrigaCX, commonly known by the nickname "0xSifu" - withdrew millions of dollars from the LlamaLend CRV/crvUSD pool , pushing the crvUSD loan interest rate up to 68%.
The reason is because the founder's UwU Lend project was attacked by a security attack, causing a large amount of assets to be lost. In the past, " Capital " and Michael Egorov did not "like each other" since the "match" between the two in early January 2024.
Therefore, Michael Egorov's already "tight" position is now even more "tight" due to the actions of "0xSifu".
UwU Lend is a decentralized finance (DeFi) protocol that operates as a liquidation marketplace, allowing users to deposit and borrow digital assets. This project is a Fork of AAVE, supporting algorithmic MIM stablecoin lending.
2 days ago, UwU Lend suffered a security attack causing a total loss of 23 million USD in crypto assets in the protocol including:
- 481,357 Wrapped Ether (WETH) worth $1.7 million
- 17,629 Wrapped Bitcoin (WBTC) worth $1.19 million
- 499,254 bLUSD worth 592.6 thousand USD
- 233,819 Curve Finance stablecoin crvUSD , worth $233.5k
- 1.39 million Spark ProtocolsDAI Token , worth 1.51 million USD
- 25.35 million CRV Token worth 9.38 million USD
- 3.52 million Dai stablecoins
- 4.22 million stablecoin USDT by issuer Tether ;
- 486,455 sUSDe Token - Certificate version that can enjoy high returns from Stake Ethena's USDe stablecoin - worth about 525 thousand USD.
Coin68 compiled
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