Curve founder Michael Erogov pays down all of his debts to Aave

Curve founder Michael Erogov pays down all of his debts to Aave

Curve founder still owes $42.7M to four lending protocols.

CRV holders breathed a collective sigh of relief yesterday when Curve's founder, Michael Erogov, paid down the last of his debts on Aave.

On Sept. 27, Egorov deposited about $11 million of his USDT dollars 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 cryptocurrency is down 59% since its high of 2023 in February.

In June, Geoffrey Erogov's loan portfolio was flagged by Gauntlet, a risk management firm. Gauntlet warned that Aave v2's decision to freeze its CRV market and prevent the token from being used as a collateral for new loans taken out of the protocol.

While Gauntlet's initial proposal was rejected by AAVEholders, a follow-up proposal was passed in August as the crypto market downturn intensified the risks posed by Erogov's position.

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

Following the sale on Sept. 1, Erogov has offloaded more than 174M CRV tokens.