Jun Du, the co-founder of Huobi, has purchased 10 million Curve DAO Tokens (CRV) for $4 million from Curve Finance founder Michael Egorov, who is seeking to decrease his exposed loan position.
In a tweet on Aug. 1, Du revealed his intention to acquire 10 million CRV tokens at the prevailing market rate of $0.40 — a value established through various over-the-counter transactions involving Egorov and several members of the crypto community. A report in The Block states that Du confirmed via direct message on X (formerly Twitter) that he completed the purchase and decided to lock up the tokens as veCRV, giving him voting rights on the platform.
The Huobi co-founder took to X and expressed his support for Curve, highlighting his previous assistance during BendDAO’s liquidity crisis. Du said the existing challenges were transitory and that he believes the industry would benefit from collective support. Du is also the CEO of New Huo Tech, a digital assets service platform, and co-founder of the Web3 fund ABCDE.
Egorov took out a $100 million stablecoin loan using his own CRV stash as collateral. However, the protocol was exploited on July 30, resulting in a 30% crash in CRV prices.
Related:Curve emergency DAO terminates rewards for hack-related pools
According to Debank, Egorov has managed to repay over $17 million in stablecoin loans, leading to a marginal improvement in the overall health of the loans. However, he still faces a significant debt burden, with approximately $60 million in stablecoins owed on Aave, $12 million on Abracadabra and around $8 million on Inverse. To mitigate the risks associated with its exposure to CRV, Abracadabra Money has suggested raising the interest rate on its outstanding loans.
Aave (AAVE), which serves as the governance token for the decentralized finance (DeFi) protocol, Aave, saw a significant drop of 17% from July 30 to August 1, bringing its value down to $62. This decline was attributed, in part, to concerns about cascading liquidations on DeFi protocols triggered by the recent Curve exploit.
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Written by Amaka Nwaokocha on 2023-08-04 20:30:00.
