In a financial maneuver that caught the crypto world’s attention, Michael Egorov, the developer and founder of Curve Protocol, made a strategic move by closing his hefty debt position on Aave with a repayment in USDT on September 26.
A Calculated Strategy
As reported by Lookonchain, Egorov initiated this bold move by depositing a substantial 68 million CRV tokens into Silo Finance. From there, he borrowed 10.77 million crvUSD, a stablecoin issued by Curve Protocol. This move laid the groundwork for what would become a remarkable financial maneuver.
USDT Redemption
Egorov then took a pivotal step by swapping his crvUSD for USDT, effectively acquiring the stablecoin. This USDT was subsequently used to meticulously repay all the debt associated with his borrowing position on Aave, solidifying his financial strategy.
A Complex Financial Portfolio
A glance at Egorov’s DeBank profile reveals the scale of his financial activities. Despite this bold debt settlement move, he still maintains open positions worth $42.7 million across four different platforms, namely Fraxlend, Inverse, Cream Finance, and Silo. All of these positions are backed by a staggering 253.67 million CRV tokens, highlighting the complexity of his financial portfolio.
Navigating Liquidation Risks
Earlier in August, Michael Egorov faced severe liquidation risks as Curve Protocol suffered a $47 million exploit, causing its token’s value to plummet by more than 20% in a short period. At that time, Egorov had accumulated a total of $168 million in CRV-collateralized loans from various DeFi protocols, including Aave, Frax Finance, and others.
The decline in CRV’s price brought his loans dangerously close to liquidation levels. However, Egorov’s financial acumen prevailed as he managed to sell CRV tokens through over-the-counter (OTC) transactions to prominent buyers, with Tron founder Justin Sun among them. This move allowed him to navigate the turbulent waters of DeFi and protect his positions.
Michael Egorov’s recent debt repayment strategy showcases the intricate and dynamic nature of the crypto space, where astute financial maneuvers can make all the difference. As the crypto landscape continues to evolve, Egorov’s actions serve as a testament to the agility and resourcefulness of industry leaders in safeguarding their assets and positions.
