The founder of Curve Finance has bought himself some breathing room amid a recent exploit to the decentralized exchange.
The principal value of Michael Egorov’s loan on Aave dropped from $63.3 million to $54.1 million thanks to the help from a host of backstoppers.
He deposited around 37 million CRV tokens, worth around $22.2 million, today, according to the transaction history of his Ethereum wallet.
Curve Finance suffered an exploit earlier this week due to a vulnerability related to the Vyper programming language. Hackers made off with crypto assets worth $52 million, including 7.19 million worth CRV tokens, worth $4.52 million. The move also plummeted the price of CRV.
The CRV price plummeted to two-month lows of $0.59 following the attack, per CoinGecko, increasing the liquidation risk of Micheal Egorov’s loans.
If the price of CRV had hit $0.372 then Egorov’s position would have been blown out.
Several known DeFi personalities like Tron Foundation’s CEO, Justin Sun, power DeFi user, DCF God, and Jeffrey Huang aka Machi Big Brother have since stepped in, buying CRV tokens from Egorov.
According to on-chain security firm PeckShield, Sun exchanged 5 million CRV tokens worth $3 million, per CoinGecko data, from Egorov for $2 million in Tether’s USDT in a direct over-the-counter trade.
Sun later confirmed in a tweet saying that he’s “excited to assist Curve.”
Excited to assist Curve! As steadfast partners, we remain committed to providing support whenever needed. Our joint efforts will introduce an @stusdt pool on Curve, amplifying user benefits. Together, we aim to empower the community and forge a decentralized finance!
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 1, 2023
Egorov later received $1 million in USDC and USDT stablecoins from the Cream Finance multi-sig wallet and $1.5 million USDT from Jeffrey Huang aka Machi Big Brother, per PeckShield reports.
Nansen analyst Sandra tweeted that Egorov transferred over 50 million CRV tokens to other entities which includes power DeFi user DCFgod and the Web3 investment firm, DWF Labs.
The Curve OTC War updates:
17.5M CRV to 0xf51
5M CRV to Justin Sun
4.25M CRV to DCFGod
2.5M CRV to Ox4d3
2.5M CRV to DWF Labs
2.5M CRV to Cream: Multisig
1.25M CRV to 0xcb5
3.75M CRV to machibigbrother.eth
250k CRV to 0x9bf
— Sandra (@sandraaleow) August 1, 2023
All told, including deals made by those identified, the total amount Ergorov sold was around 50 million CRV for $0.4 per token, earning close to $20 million.
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Source: https://decrypt.co/150852/justin-sun-dcf-god-and-others-line-up-buy-curve-finance-founders-crv-tokens
