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Jun Du, the co-founder of Huobi, has bought 10 million Curve tokens (CRV) for $4 million from Michael Egorov, the founder of Curve, as he seeks ways to decrease his exposed loan position.
In an initial tweet on August 1, Du made his intention known to acquire 10 million CRV tokens at the prevailing market rate of $0.40, a value established through various over-the-counter transactions involving Egorov and several members of the crypto community. A Block report states that subsequently, Du confirmed via direct message on Twitter that he successfully completed the purchase and decided to lock up the tokens as veCRV.
This lockup provides him with voting rights on the Curve platform in return for keeping the tokens inaccessible for a specific duration.
The co-founder took to Twitter and expressed his support for Curve, drawing parallels to his previous assistance during BendDAO’s liquidity crisis. He emphasized that the existing challenges were transitory and that he believed the industry would benefit from collective support. Notably, Du holds positions as the CEO of New Huo Tech, a digital assets service platform and serves as a co-founder and GP at the web3 fund ABCDE.
The Curve founder took out a $100 million DeFi stablecoin loan using his own CRV stash as collateral. However, the protocol was exploited on July 30, resulting in a 30% crash in CRV prices.
Related:Curve emergency DAO terminates rewards for hack-related pools
As per Debank, Egorov has managed to repay over $17 million in stablecoin loans, leading to a marginal improvement in the overall health of the loans. However, despite this progress, the DeFi founder still faces a significant debt burden, with approximately $60 million in stablecoins owed on Aave, $12 million on Abracadabra and around $8 million on Inverse. To mitigate the risks associated with its exposure to Curve DAO (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, saw a significant drop of 17% from July 30 to August 1, bringing its value down to $62. This decline was attributed, in part, to concerns about cascading liquidations on DeFi protocols triggered by the recent exploit in the Curve Finance pool.
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