Over the weekend, a pockets tagged as belonging to Michael Egorov, the founding father of Curve Finance, made a notable maneuver by depositing 38 million Curve DAO tokens — equal to $24 million — into the decentralized lending platform Aave.
This motion, famous by on-chain analyst Lookonchain, was a part of Egorov’s plan to extend his collateral and mitigate the danger of potential liquidation. The transfer is especially noteworthy as a result of sheer scale of the collateral he controls. He secured his Aave mortgage with an astonishing 277 million CRV tokens, which accounts for 32% of the entire circulating provide of CRV.
Based on DeBank’s knowledge, Egorov’s preliminary mortgage from Aave was substantial — over $64 million in stablecoins. To collateralize this mortgage, he provided practically one-third of the entire circulating provide of CRV tokens, which signifies the numerous function that enormous token holders play within the DeFi panorama.
The value of CRV has declined by 21.71% on crypto alternate Bitstamp over the previous week. Supply: TradingView
Extra CRV, higher well being
Lookonchain reported that Egorov’s current deposit improved the well being score of his place from 1.3 to 1.5. This can be a essential improvement, as a well being price of 1 often triggers liquidation. At the moment, the well being price of Egorov’s place stands at a safer 1.7.
Given the quantity of Egorov’s CRV collateral, a mass liquidation might trigger important market disruption by precipitously dropping the token’s value. Automated liquidations are an inherent function of the DeFi panorama. They will set off a cascade impact, inflicting the value of the collateralized asset to plummet till the market stabilizes.
