Huobi co-founder Jun Du has acquired 10 million Curve DAO Tokens (CRV) for $4 million from Curve Finance founder Michael Egorov. Du’s intention to purchase the tokens at the market rate of $0.40 was revealed in a tweet on August 1. The value of the tokens was determined through over-the-counter transactions involving Egorov and members of the crypto community. Du confirmed the completion of the purchase through direct message and has decided to lock up the tokens as veCRV, giving him voting rights on the platform.
Du expressed his support for Curve on Twitter, comparing it to his previous assistance during BendDAO’s liquidity crisis. He emphasized that the challenges faced by Curve were temporary and that the industry would benefit from collective support. Du holds positions as the CEO of New Huo Tech, a digital asset service platform, and serves as a co-founder and GP at the web3 fund ABCDE.
Egorov had taken out a $100 million DeFi stablecoin loan using his own CRV stash as collateral. However, the protocol was exploited on July 30, leading to a 30% crash in CRV prices. Despite managing to repay over $17 million in stablecoin loans, Egorov still faces a significant debt burden. He owes approximately $60 million on Aave, $12 million on Abracadabra, and around $8 million on Inverse. To mitigate the risks associated with its exposure to CRV, Abracadabra Money has suggested raising the interest rate on its outstanding loans.
The AAVE token, which serves as the governance token for the decentralized finance (DeFi) Aave protocol, experienced a significant drop of 17% from July 30 to August 1. This decline was attributed in part to concerns about cascading liquidations on DeFi protocols triggered by the recent exploit in the Curve Finance pool.
In summary, Huobi co-founder Jun Du has acquired 10 million CRV tokens from Curve Finance founder Michael Egorov. Du has decided to lock up the tokens as veCRV, giving him voting rights on the platform. Egorov, who had taken out a significant DeFi stablecoin loan, still faces a considerable debt burden despite repaying a portion of the loans. Abracadabra Money has proposed raising the interest rate on its outstanding loans to mitigate the risks. The decline in AAVE token value is attributed to concerns about cascading liquidations on DeFi protocols following the exploit in the Curve Finance pool.
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