Lending agreement forces debt! Curve founder engages in off-exchange trading of CRV again, Yearn and Stake DAO rescue MIM borrowing.

On 8/1, Michael Egorov, the founder of Curve, who was caught in a CRV lending position liquidation panic, has successfully exited by trading CRV off-market at a price of 0.4 with the help of TRON founder Justin Sun, and others, including Huang Li Cheng, easing his lending position. On 8/2, several DeFi lending protocols mainly used by Egorov have initiated or executed governance proposals, directly or indirectly pressuring Egorov to repay the CRV collateralized loan as soon as possible. Learn about debt collection policies in lending protocols.

On the evening of 8/2, Egorov started selling coins to exit while repaying debts.

Yearn and Stake DAO Rescue MIM Borrowing

According to on-chain data, DeFi protocol Yearn's treasury spent $1.5 million to acquire around 3.75 million CRV tokens valued at approximately $2.2 million at a price of 0.4, while liquidity provider organization Stake DAO also spent $500,000 to acquire 1.25 million CRV tokens valued at around $735,000 at the same price.

Michael Egorov used these tokens to repay the MIM borrowing on Abracadabra, with a total MIM borrowing value of around $2 million.

Repayment to Avoid Abracadabra's Punitive Interest Rates

Reportedly, Abracadabra, which allowed Egorov to borrow a large amount of MIM tokens using CRV, is conducting a governance proposal vote to increase the interest rates on existing borrowing positions, expected to be completed by 8/3 with rates as high as 30% to 200%.

Although Egorov has reduced the MIM borrowing from around 14 million MIM on the afternoon of 8/2 to approximately 12 million MIM at the time of writing, if the proposal passes successfully at the 12 million MIM level, Egorov's principal will still face a 200% base interest rate and potential pressure from multiple rates.

Abracadabra's Punitive Interest Rates May Change: One Address Reverses the Situation

Abracadabra's attempt to pressure Curve's founder through governance may not be easy, as the high-interest rate proposal, initially overwhelmingly supported, was opposed by a single address casting 10 billion votes against, 2.5 times the number of supporting votes.This proposal had only 55 total voting addresses.