- Kaiko acknowledged that the Curve Finance CEO’s newest contribution to CRV was made to guard it from liquidation.
- The blockchain intelligence agency famous that the CEO has $200 million. CRV, for 60 million USD mortgage.
- Their report additionally states that liquidating the CEO place might lead to inadequate liquidity.
In a report printed earlier at this time, blockchain intelligence agency Kaiko famous that Curve Finance CEO Michael Egorov has contributed $35 million over the previous few weeks. In response to the corporate, these deposits could also be an try to guard its massive lending place in DeFi lending protocols from liquidation.
In response to Kaiko, this is not the CEO’s first time utilizing DeFi lending and borrowing protocols. Additionally, CEO CRV’s current contributions to Aave V2 are certainly not the biggest made on a DeFi platform, the blockchain intelligence agency famous. Kaiko revealed that Egorov at the moment has 200 million CRV tokens deposited with Aave V2, which is backing a 60 million USDT mortgage.
Kaiko suspects that Egorov’s current deposits are an try to guard his place and keep away from liquidation. Curiously, they highlighted the truth that the present CEO place is likely one of the largest in DeFi historical past. As well as, Egorov’s pockets is accountable for nearly 95% of the CRV deposited in Aave V2.
This massive place is related to the DeFi house because it will not be ample liquidity to extend the place. In Egorov’s state of affairs, liquidators would doubtless take the next steps: trade ETH for USDT, use USDT to repay the loaned quantity, buy CRV tokens, and at last trade CRV again to ETH.
The profitability of this course of relies on the flexibility to shortly promote the acquired CRV tokens at a good value. Nevertheless, in line with the blockchain intelligence agency, a wave of liquidations placing strain on promoting might trigger CRV to fall in worth. This decline might even attain the purpose the place the collateral shall be valued decrease than the borrowed tokens.
At press time, the one largest supply of liquidity for CRV was the curve within the CRV-ETH pool, which had a complete worth locked (TVL) of about 50 million. USD, in line with the report. In the meantime, Uniswap V3 had roughly 4.5 million in all its CRV swimming pools.
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