Curve Founder's Leveraged Position May Face Liquidation Risk Again

WikiBit 2024-01-25 10:38

Curve founder Michael Egorov's CRV vault is once again facing liquidation risk. He borrowed over $54 million across six lending platforms, with the collateral and remaining assets in the wallet primarily consisting of Curve. The safety factors for the six vaults range between 1.29 and 2.29. If the CRV price drops by another 23%, specifically to $0.36, it will trigger liquidation.

Among them, the vault with the lowest safety factor is with Frax Lending, where the current borrowing interest rate is 35%. If the utilization rate continues to increase, Frax Lending may once again initiate a high-interest mode, accelerating the occurrence of liquidation. In this loan, Michael collateralized 39 million CRV, borrowed 17 million Frax, while Binance's CRV trading volume in the past 24 hours was 10.9 million.

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