Michael Egorov's Curve Positions Could Face Liquidation Amidst Market Volatility

IconCryptoNewsTerminal Staff13 Jun, 2024

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Michael Egorov's Curve Positions Could Face Liquidation Amidst Market Volatility

Curve (CRV) founder Michael Egorov's extensive borrowed positions are facing potential liquidation if the price of CRV drops by approximately 10%, according to a recent report by Arkham Intelligence. Egorov has borrowed approximately $95.7 million in stablecoins (primarily crvUSD) against $141 million worth of CRV across five distinct protocols. The annual interest payments on these loans currently amount to $60 million. On LlamaLend, where Egorov has borrowed $50 million, the interest rate (APY) stands at 120%. Arkham Intelligence emphasizes the unlikelihood of Egorov obtaining additional crvUSD loans against his CRV holdings on LlamaLend. The report also mentions that Egorov has been actively hedging his positions by purchasing put options on Deribit. However, it is unclear whether these hedges will be sufficient to prevent liquidations in the event of a significant drop in CRV's price. Egorov's substantial borrowed positions and high-interest payments have raised concerns about the sustainability of his financial strategy. Market volatility and potential price fluctuations pose risks to the viability of his positions, potentially leading to forced liquidations.

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