Justin Sun Strong Support to Curve Protocol Amidst Troublesome Situation

Justin Sun Strong Support to Curve Protocol Amidst Troublesome Situation

The Curve protocol, a prominent player in the decentralized finance (DeFi) space, recently faced a challenging situation following an exploit on the Vyper platform. At the center of this predicament was Michael Egorov, the founder of Curve, who found himself in a difficult spot. However, with the help of some strategic moves and the unwavering support from key players, Egorov managed to navigate through the turbulence and come out stronger.

Michael Egorov, the CEO of Curve
Michael Egorov, the CEO of Curve

Egorov’s Borrowing Valuation Drops Amidst CRV Downtrading

As previously reported, Egorov had secured loans using CRV on different DeFi protocols, including Aave and Frax Finance. One of his positions on Aave involved a substantial $168 million worth of CRV, which was backing a $63 million stablecoin borrowing. Unfortunately, as the value of CRV continued to decline, this position came perilously close to liquidation risk.

Additional Funds and Support from Buyers

Egorov’s astute financial management came to the forefront as he successfully raised additional funds to bolster his position. By strategically selling CRV tokens, he managed to increase his available funds, reducing the borrowing valuation from $63 million to nearly $54 million. Notably, several buyers came forward to support Egorov during this time of need.

Tron Founder Justin Sun Steps In

One of the significant backers of Egorov was none other than Justin Sun, the founder of Tron, a prominent blockchain platform. Sun showed his unwavering commitment to the DeFi community by purchasing 5 million CRV tokens directly from Egorov in an over-the-counter (OTC) trade, paying with Tether’s USDT stablecoin.

“Excited to Assist Curve!”

In a tweet, Sun expressed his enthusiasm for supporting Curve and reaffirmed his commitment to providing assistance whenever required. He highlighted their joint efforts to introduce an STUSDT pool on Curve, which would amplify user benefits. This move aimed to empower the DeFi community and advance the world of decentralized finance.

Excited to assist Curve! As steadfast partners, we remain committed to providing support whenever needed. Our joint efforts will introduce an @stusdt pool on Curve, amplifying user benefits. Together, we aim to empower the community and forge a decentralized finance!

— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 1, 2023

Notable Buyers in the OTC Market

Egorov’s strategic supply of CRV tokens in the OTC market attracted several notable buyers. Among them were DCFGod, Cream Finance, DWF Labs, and Machi Big Brother. These entities recognized the value and potential of CRV tokens, leading to a successful series of trades that raised over $20 million in funds.

A Strategic Balancing Act

With the raised funds, Egorov skillfully balanced his borrowings, securing his position and safeguarding against liquidation. This move demonstrated his financial acumen and the resilience of the Curve protocol in the face of challenges.

Conclusion

The recent turbulence faced by the Curve protocol highlighted the strength of the DeFi community and the unwavering support it enjoys from key players like Justin Sun. As the decentralized finance ecosystem continues to evolve, the actions taken by founders and strategic partners play a crucial role in ensuring its stability and growth. Michael Egorov’s handling of the situation and the support he received from buyers and partners underscore the strength and potential of DeFi protocols in today’s financial landscape.

H.E. Justin Sun’s intervention and the subsequent rally of support breathe new life into Curve, demonstrating the power of collaboration and commitment in the ever-expanding world of decentralized finance.