Last weekend, a big transfer took place in the wallet of Michael Egorov, the founder of one of the important crypto money projects, Curve Finance (CRV). The Curve founder sent 38 million CRV coins to Aave hours ago.
CRV investors are wondering why the transfer caught on the radar of on-chain data tracker Lookonchain. On-chain analysts, on the other hand, stated that Egorov made the move to secure debt collateral.
The founder of https://t.co/KJyxZS1wiW deposited 38M $CRV ($24.5M) into #Aave due to a 16% drop in $CRV price, increasing the health rate to 1.52.
He has deposited a total of 290M $CRV ($187M) into #Aave and borrowed $71M stablecoins.https://t.co/WM1nW8JKwU pic.twitter.com/MGvMDmSv5S
— Lookonchain (@lookonchain) June 10, 2023
According to Lookonchain’s post, the Curve founder is trying to prevent the CRV coin from falling. The leading altcoin CRV has lost close to 20% in the past week. Egorov receives stablecoin debt by collateralizing the CRV coins he transferred to Aave.
Lookonchain emphasized that as a result of this move, the CRV health rate increased to 1.52. On-chain experts carefully monitor the ratio in terms of liquidation risk.
Crypto lovers are concerned about the supply, although they appreciate the goodwill of the Curve founder. Together with the last transfer transaction, the size of the transactions in Aave represents 32% of the total CRV supply. The CRV price could be at great risk if Michael Egorov’s transactions on the Aave platform are liquidated.
$CRV is currently trading at $0.655.
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