Michael Erogov's $42.7 million debt to Aave v2 still owes

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Michael Erogov's $42.7 million debt to Aave v2 still owes

The founder of Curve still owes $42.7 million to four lending protocols.

Aave's last debts on Curve were paid down yesterday by Curve's founder, Michael Erogov.

On Sept. 27, Egorov deposited around $11 million in US dollar cash to Aave v2, paying down all of his outstanding debts to the protocol.

Debank notes that Erogov has $42.7 million in outstanding stablecoin debts across the Cream, Inverse, Fraxlend, and Silo lending protocols. The loans are currently backed by $132.5 million of CRV, meaning CRV would need to lose around two-thirds of its value before threatening Erogov's existing positions with liquidation.

The CRV has been down 2% in the past 24 hours, last changing hands for $0.51. The value of the token is down 59% from its previous high of 2023 in February.

In a statement, Erogov's loans were flagged by Gauntlet, a risk management firm, in June. Gauntlet advised that Aave v2 move to freeze its CRV market and prevent the token from being used as collateral for new loans taken out of the protocol.

While Gauntlet's initial proposal was rejected by AAVE holders, a follow-up proposal passed in August as the crypto market fell significantly as it heightened the risks posed by Erogov's position.

Curve's founder began selling his collateral assets in large private deals in early August, with Erogov's loans set to face liquidation with a 40% drawdown. Buyers took over large CRV tranches in exchange for stablecoins, with Erogov using the funds raised to reduce his DeFi debts.

In response to the latest sale on Sept. 1, Erogov had offloaded more than 174M CRV tokens.