Original Author: @Loki_Zeng
Original source: Twitter
Note: The original text comes from @Loki_Zeng's Twitter threads.
This concludes the first phase of stress testing (Fraxlend debt) for $CRV. (By the way, the design of Fraxlend is really good, and friends who are lending platforms are recommended to check it out)
$0.4 (about 300M+ market value) is indeed a good price, and there are more interested institutions and bigwigs than you can see on the chain. Especially those who want to make a difference in Stablecoin/LSD
The (potential) second phase of the stress test will depend on what actions AAVE takes and how quickly, after today it is impossible for AAVE to turn a blind eye to this risk? Of course, everyone still has plenty of time to cope.
In addition, compared to "Curve liquidation", I think it is more appropriate to call this event "Micheal liquidation", for two reasons:
1) The purpose of the sharks rushing over smelling the smell of blood is not to kill Curve, but to obtain more cost-effective chips (especially those in Micheal’s hand). The smoothness of OTC transactions proves this
2) In terms of liquidation risk alone, Micheal used reasonable rules to obtain $CRV, and used reasonable rules to obtain high-value loans from AAVE. This incident is completely different from Maker’s debt restructuring a few years ago. Maker needs to deal with [system debt], but today’s problem is to deal with [founder’s personal debt]
More importantly, the smoothness of OTC further proves one point: Curve is not easy to be replaced at present, but Micheal is not necessarily.
