Curve Founder Reduces DeFi Debt to $42.7M

Michael Egorov, the inventor of the decentralized finance (DeFi) protocol Curve, recently settled his loans on the Aave lending platform, reducing his total DeFi protocol debt to $42.7 million.

According to the on-chain analytics platform Lookonchain, the proprietor of Curve deposited 68 million CRV tokens, worth $35.5 million, to the lending protocol Silo and borrowed 10.77 million in the crvUSD stablecoin over the past two days.

Egorov then exchanged the crvUSD for Tether and settled his entire Aave debt.

According to Lookonchain, the proprietor of Curve Finance holds a total of 253,67 million CRV tokens as collateral and owes $42.7 million across four protocols, including Silo, Fraxlend, Inverse, and Cream.

On Aug. 1, Egorov made headlines for his $100 million DeFi debt, as reports showed that further drops in the price of Curve DAO (CRV) tokens could potentially initiate liquidations and cause a DeFi implosion.

Seeing the risks, the proprietor of Curve Finance took steps to reduce his debt and utilization rate at the time. Due to a reentrancy vulnerability, the protocol was compromised to the tune of $47 million at the time, causing a precipitous decline in the value of CRV tokens.

Several Curve Finance stable pools were exploited on July 30 due to vulnerabilities in the Vyper programming language.

According to Curve Finance, the reentrancy locks failed, resulting in the compromise of the pools. On August 1, the price of CRV tokens dropped from $0.73 on July 30 to $0.50.