Michael Egorov, CEO of decentralized finance (DeFi) protocol Curve Finance, moved $24 million in CRV to mitigate the risk of a possible liquidation.
As dark clouds continue to hover over the cryptocurrency market, preparations for possible major pullbacks have begun. Michael Egorov, CEO of Curve Finance, 65 million dollars stablecoin loan to reduce the risk of liquidation to aave $24 million total worth 38 million CRVs he laid.
This transaction will increase Egorov’s collateral and mitigate the potential risk of liquidation interpreted as part of the plan. Total CRVs currently in circulation by CEO more than 32% It is already deposited on the Aave platform.
Egorov began borrowing stablecoins from Aave in April 2022. Egorov in the process 37 million Tetheri (USDT) crypto exchange to Bitfinex when sending 51 million USDCthe incoming market maker to Wintermute conveyed.
According to experts, if the price of CRV continues to fall in the coming months, the coverage in question can become dangerous and Egorov’s more liquidity may need to be added. Due to the intertwined nature of the decentralized financial market, it has been observed in the past that many companies, like dominoes, were liquidated during periods of serious decline.
Open position now 1.68 assurance rate, and if this figure If it drops below 1.00 collateral will be automatically liquidated. In the last 1 week according to CoinGecko data 22.3% depreciating CRV, at the time of writing at $0.649 is being traded.