Curve founder repays Aave loan, still owes $42m to defi lenders

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Michael Egorov, the co-founder of Curve Finance, has com­plete­ly set­tled his debt on Aave after deposit­ing 68 mil­lion CRV, equiv­a­lent to approx­i­mate­ly $35 mil­lion, to Silo.

Egorov with­drew 10.7 mil­lion of crvUSD, Curve’s decen­tral­ized sta­ble­coin, from the non-cus­to­di­al lend­ing pro­to­col fol­low­ing his CRV deposit, accord­ing to on-chain ana­lyt­ics provider, Lookon­chain. After that, he swapped them for USDT before repay­ing his debt on Aave, a decen­tral­ized lend­ing and bor­row­ing pro­to­col on Ethereum. 

Still, the Curve founder still owed approx­i­mate­ly $42 mil­lion to four defi lenders, includ­ing Silo, Fraxlend, Inverse, and Cream Finance, col­lat­er­al­ized by 253.7 mil­lion CRV val­ued at $132 million.

Egorov’s Aave repay­ment comes near­ly two months after CRV prices post­ed steep drops, threat­en­ing to liq­ui­date his $80 mil­lion on-chain loan positions. 

The price crash came after Curve Finance suf­fered a re-entran­cy attack in late July 2023. Hack­ers exploit­ed a bug in a ver­sion of Vyper’s code which is used by Curve for the pro­to­cols’ sta­ble swap exchange, steal­ing tens of mil­lions worth of coins.

Max­i­mal extractable val­ue (MEV) bot oper­a­tors raked in hun­dreds of Ether (ETH) dur­ing the ensu­ing on-chain tus­sle for block space and pri­or­i­tized transactions.

Short­ly after the attack, Egorov struck mul­ti­ple over-the-counter (OTC) agree­ments with a pool of investors, includ­ing mar­ket mak­er Win­ter­mute and Tron co-founder, Justin Sun, as he scram­bled to raise funds.

The co-founder even­tu­al­ly secured $46 mil­lion and trans­ferred 106 mil­lion CRV to select buy­ers, effec­tive­ly quelling what would lat­er be known as the Curve Wars.

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