After the Vyper Vulnerability was exposed, Curve’s native protocol, CRV fell by over 30%, putting the CEO of Curve, Micheal Egorov on edge as he has $168 million in CRV backed loans from different DeFi protocols including Aave, Abracadabra and Fraxland.
According to the data from DeBank, Egorov’s loans totaling $168 million of CRV are in danger as the token keeps shrinking in price. The total secured CRV in his loan represents approximately 34% of token’s total market capitalization.
Egorov has supplied $168 million in CRV tokens on Aave and secured a $63M loan in USDT. In this position, the liquidation price of the CRV is $0.37. On other protocols, he has a loan on Frax Finance with $17 million and a $18 million loan on Abracadabra.
As the DeFi is interconnected, Egorov’s CRV positions are raising tension in the DeFi ecosystem as well as Curve protocol’s sustainability as the liquidation could cause a huge cascade in CRV’s market.
A popular analyst on Twitter, Autism Capital, describes Michael Egorov’s positions as troublesome for DeFi if it reaches the liquidation phase. The liquidation may cause every protocol to sell the loan-secured CRV and dump the market even further.
Also Read: White Hat Restores $5.4M to Curve Finance in $47M DeFi Hack
The critical vulnerability in the smart contract language Vyper put several DeFi protocols at risk of being exploited. This led to Curve being drained for $47 million and protocol’s native token CRV plunged over 20%, post the hack.Â
