Founder of Curve Finance Shifts Debt from Aave to Silo Finance

Latest Update as of 27/09/2023:

According to Lookonchain, as of the afternoon of September 27, Curve Finance founder Michael Egorov has fully repaid his debt on Aave.

In the past two days, Egorov deposited 68 million CRV (worth $35.5 million) into Silo Finance as collateral, subsequently borrowing 10.77 million crvUSD. He then swapped this crvUSD for USDT and used it to repay his debt on Aave.

Currently, the Curve founder has $42.7 million in debt on various DeFi platforms, including Silo Finance, Fraxlend, Inverse Finance, and Cream Finance. These debts are collateralized by 253.67 million CRV (valued at $132 million).

Source: Lookonchain (27/09/2023)

Original Article:

After multiple borrowing positions with CRV as collateral and numerous high-profile OTC sales, Curve Finance founder Michael Egorov has taken new steps regarding his debt positions.

Following a significant recovery in CRV's price over the past 48 hours, fueled by large-scale staking activities by "whales" as previously reported by Coin68, Egorov deposited a large amount of CRV into the lending protocol Silo Finance.

Specifically, the Curve Finance founder collateralized 23.26 million CRV to borrow 3.75 million crvUSD from the wallet address "0x425...6c5a". This crvUSD was then transferred to the wallet address "0x7a1...5428" - the address holding Egorov's large borrowing positions.

After receiving the stablecoins, Egorov swapped crvUSD for USDT and used it to repay his loans on Aave.

Subsequently, 22.5 million CRV was withdrawn from Aave, with 15 million CRV immediately deposited into Silo as collateral.

Source: Curve Finance (27/09/2023)

The Ongoing Cycle:

• Deposit CRV into Silo as collateral and borrow crvUSD
• Swap crvUSD for USDT to repay loans on Aave
• Withdraw CRV collateral from Aave and deposit it back into Silo

Michael Egorov's apparent goal is to "shift debt" from Aave to Silo, a lending platform that supports CRV as collateral and crvUSD for borrowing. This move likely aims to minimize the negative impact on Egorov's positions from Aave's governance and voting processes.

Additionally, this strategy might help boost the volume and trading activity for his "homegrown stablecoin," crvUSD.

Egorov's borrowing positions collateralized by CRV have faced criticism from the community. Lending platforms have also been criticized for setting high debt ceilings and not conducting adequate risk assessments for highly volatile assets.

This article was updated on 27/09/2023 to reflect the latest developments regarding Michael Egorov's debt repayment and strategic moves involving Curve Finance and Silo Finance.