In a bid to decentralize CRV tokens via it’s lending platform, The founder of Curve, Michael Egorov has deposited $24 million worth of Curve DAO (CRV) tokens This is keenly necessary for Aave to reduce the liquidation risk of a $65 million stablecoin loan.
Since April, Egorov borrowed stablecoins on Aav with $37 million worth of tether (USDT) being sent to crypto exchange Bitfinex whilst $51 million in USDC was sent to Key market maker Wintermute, according to blockchain sleuth Lookonchain.
The wallet owned by Egorov has supplied a total of $188 million in collateral on Aave, with $64.2 million in USDT being borrowed in an open position, according to Debank.
Although, the vacant position currently has a health rate of 1.68, the collateral will be naturally liquidated if it drops below 1.00. CRV is recently trading at $0.65 having plummeted by 2.1% in the past 24-hours, it slumped by more than 17% in a sudden move in the early hours of Saturday morning.
Meanwhile, If the price of CRV is to continue to over the coming months, the value of collateral and thus the health rate will also suffer. At the moment, CRV is 90% lower compared to its 2022 all-time high of $6.50. Earlier this year, Aave cleared bad debt positions that happened after the Mango Markets exploit worth 2.7 million CRV