Huobi co-founder Jun Du bought 10 million curve tokens (CRV) for $4 million from Curve founder Michael Egorov, who continues to look to cut back his at-risk mortgage place.
Du initially tweeted that he needed to purchase 10 million CRV at $0.40, the present going value for a number of over-the-counter offers between Egorov and a variety of crypto people. Du confirmed by way of Twitter DM that he bought these tokens and that he has locked up the tokens as veCRV (which supplies voting rights on the Curve platform in change for the tokens being locked up for a time frame).
“I will lock in for at the very least a yr and hope the Curve will get higher and higher,” he mentioned.
On Twitter, he added that he supported Curve in the identical approach as when BendDAO had a liquidity disaster. He mentioned, “The present difficulties are solely short-term, and the business shall be more healthy if we assist it collectively.”
Du is the CEO of New Huo Tech, a digital belongings service platform, and the co-founder and GP at web3 fund ABCDE.
Retaining the mortgage afloat
Egorov is constant to promote CRV tokens to strengthen his mortgage place. He has a number of loans on varied DeFi lending platforms, largely to borrow stablecoins utilizing CRV as collateral. On Aave alone, he has borrowed $56 million of stablecoins with $149 million of CRV as collateral.
At present his well being scores having improved to round 1.67 or greater on these platforms. But there’s nonetheless a threat that had been the value of CRV to fall low sufficient, his positions may very well be liquidated, doubtlessly leaving these platforms with dangerous debt. This difficulty is extra critical as a result of it entails such a big portion of the CRV provide.
Thus far, Egorov has offered at the very least 55 million CRV to varied events together with Tron founder Justin Solar, crypto dealer DCFGod and Mechanism Capital co-founder Andrew Kang.
Aave Chan Initiative has additionally proposed on the Aave governance discussion board that its treasury can purchase as much as $2 million of CRV, which it could lock up as veCRV for as much as 4 years.
