Curve founder settles 93 of 10M debt linked to liquidation by repaying

Michael Egorov, the mastermind behind the decentralized finance (DeFi) platform Curve Finance, has announced that he has successfully repaid 93% of a $10 million debt incurred from a recent soft liquidation event.
Explaining the situation, Egorov admitted, “My trading positions were too significant for the market to handle, resulting in $10 million of bad debt. I have already settled 93% of the amount owed and plan to clear the remainder shortly.”
On June 13, Curve Finance’s soft liquidation system was put to the test during a hack, leading to a 28% drop in the value of its native CRV token. According to data from Arkham Intelligence, Egorov found himself in a tight spot with $140 million in liquidations after borrowing $95.7 million in stablecoins, mainly crvUSD, against $141 million in CRV across multiple accounts on different platforms.
At the peak of the crisis, Egorov faced a staggering $60 million in annualized fees to keep his loans afloat. In response, Arkham suggested a solution, stating:
Egorov has recommended burning 10% of the outstanding CRV tokens, valued at $37 million, to stabilize the token’s price back to pre-crisis levels. “As an incentive, active voters will receive a 3-month boost in annual percentage yield (APY) on all deposits made on the platform,” the blockchain leader mentioned.
Despite this recent incident, Egorov’s history with CRV holdings and loans affecting the protocol dates back to August 2023 when Curve fell victim to a $62 million exploit, resulting in bad debt from Egorov’s $100 million borrowings at the time. However, the blockchain executive managed to repay the funds.
As of now, Curve ranks as the 19th largest DeFi platform, with over $2 billion worth of cryptocurrency assets locked in its smart contracts.
Related:
Curve Finance grants a developer $250,000 for discovering a re-entrancy vulnerability.