• Kaiko stated the Curb Finance CEO’s newest CRV deposit was made to guard him from liquidation.
• The blockchain intelligence agency famous that the CEO has 200 million CRV as backing for a 60 million USDT mortgage.
• Their report additionally urged that CEOs might not have sufficient liquidity to assist their positions in the event that they go into liquidation.

In a report launched as we speak, blockchain intelligence agency Kaiko famous that Curve Finance CEO Michael Egorov deposited $35 million price of CRV in Aave V2 in three giant transactions over the previous few weeks. The corporate stated these deposits may very well be an try to guard his giant lending place in DeFi lending protocols from liquidation.

In response to Kaiko, this isn’t the primary time the CEO has used DeFi’s lending and borrowing protocol. Moreover, the CEO’s newest CRV deposit for Aave V2 is certainly not the biggest ever made on a DeFi platform, the blockchain intelligence agency famous. Kaiko revealed that Egorov presently has 200 million CRV tokens deposited in Aave V2, which is backing a mortgage of 60 million USDT.

Kayko suspects Egorov’s latest deposits are an try and defend his place and keep away from liquidation. Apparently, they highlighted the truth that the CEO’s present place is among the greatest in DeFi historical past. Along with this, Egorov’s pockets is answerable for virtually 95% of his CRV deposited on Aave V2.

This massive place is a priority for the DeFi area provided that there is probably not sufficient liquidity to again up the place. In Egorov’s state of affairs, the liquidator would almost certainly have interaction in a collection of actions: trade ETH for USDT, use USDT to repay the borrowed quantity, purchase CRV tokens, and at last convert CRV to ETH. trade for

The profitability of this course of is determined by the speedy sale of the obtained CRV tokens at a good value. Nonetheless, in line with a blockchain intelligence agency, a wave of liquidation that places promoting strain might drive CRV’s worth down. This drop might even attain some extent the place collateral is price lower than borrowed tokens.

At press time, the one largest supply of liquidity for CRV is Curve itself inside the CRV-ETH pool, which in line with experiences quantities to a complete locked Whole Worth Locked (TVL) of round $50 million. rice discipline. Uniswap V3, however, had round $4.5 million throughout the CRV pool.

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