DOLA

Curve DAO Token

UwU Lend

DeFi

when

Today, on June 13, 2024, the majority of cryptocurrencies are experiencing a notable downturn. Amid this decline, the popular DeFi protocol Curve Finance (CRV) token experienced a significant price drop of 30% in just 3 hours. Besides this 30% price drop in the last 24 hours, millions of liquidations have been observed in CRV collateral. Following this massive price drop in CRV tokens and the liquidation of CRV collateral, the situation has gained massive attention from crypto investors and community members. The reason why, Curve Finance (CRV) token fall&nbsp; 
According to data from CoinMarketCap, the CRV token price dropped from $0.36 to $0.25 in the last 24 hours, with the most significant crash occurring within a few hours. Observing the CRV token’s price performance, multiple on-chain analytic firms and crypto intelligence firms posted on X, highlighting that Curve Finance founder Michael Egorov is responsible for this massive price drop. 
According to these posts on X, Michael Egorov has borrowed a notable $95.7 million in stablecoins (mostly crvUSD) against a massive $141 million in CRV across 5 accounts on 5 protocols. Currently, he has 111.87 million CRV, valued at $33.87 million, as collateral and $20.6 million in debt on four platforms: Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend. Egorov is facing significant liquidation risks following an earlier partial liquidation of his positions. Maintaining his positions on LlamaLend incurs $60 million annually. Michael Egorov’s action following the CRV price crash&nbsp; 
To mitigate these risks, Egorov started repaying the borrowed DOLA stablecoin on Inverse, where his position’s health rate was precariously close to the liquidation threshold. Despite these efforts, his loan on <a href="https://news.todayq.com/defi-protocol-uwu-lend-hit-by-19-3-million-exploit-report/">UwU Lend </a>remains in trouble. The situation has been heightened by the CRV token price crash, raising concerns among investors. 
Although Egorov addressed liquidation risks around 10 hours before the price drop, there has been no official response from the Curve team. This lack of communication underscores the need for transparency and responsible risk management in the DeFi space, particularly when founders leverage their project’s assets. 
Meanwhile, other cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and others continue to struggle. In the last 24 hours, BTC, ETH, and SOL have experienced a modest 0.5% positive momentum.

Curve DAO Token crashes 30%, Here’s how

Todayq News

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