Lookonchain: Curve founder deposits $24.5 million worth of CRV into AAVE

Curve founder deposits $24.5M CRV into AAVE via Lookonchain.

According to Lookonchain monitoring, due to a 16% drop in CRV price, Curve founder Michael Egorov has deposited 38 million CRV (about $24.5 million) into AAVE, increasing the borrowing health factor to 1.52. According to data, Michael Egorov has deposited a total of about 290 million CRV (about $187 million) into AAVE and borrowed stablecoins worth $71 million.

Curve founder deposited over 33% of the CRV circulating supply on Aave, borrowing 71 million stablecoins. This poses a huge risk to both the Curve ecosystem and Aave. As the market falls and liquidity shrinks, the risk intensifies. Aave V2 has no deposit limit, and thus cannot control the collateral exposure, the only option is to increase the USDT borrowing cost. Mortgaging their own coins for leverage may seem like a reluctance to sell, but it is actually a form of inducement to short sell, as A-share traders know.

Reference: https://twitter.com/lookonchain/status/1667439041527291905