Huobi co-founder Jun Du purchased 10 million curve tokens (CRV) for $4 million from Curve founder Michael Egorov, who continues to look to reduce his at-risk loan position.
Du initially tweeted that he wanted to buy 10 million CRV at $0.40, the current going price for multiple over-the-counter deals between Egorov and a range of crypto individuals. Du confirmed via Twitter DM that he purchased these tokens and that he has locked up the tokens as veCRV (which gives voting rights on the Curve platform in exchange for the tokens being locked up for a period of time).
“I’ll lock in for at least a year and hope the Curve gets better and better,” he said.
On Twitter, he added that he supported Curve in the same way as when BendDAO had a liquidity crisis. He said, “The current difficulties are only temporary, and the industry will be healthier if we support it together.”
Du is the CEO of New Huo Tech, a digital assets service platform, and the co-founder and GP at web3 fund ABCDE.
Keeping the loan afloat
Egorov is continuing to sell CRV tokens to strengthen his loan position. He has multiple loans on various DeFi lending platforms, mostly to borrow stablecoins using CRV as collateral. On Aave alone, he has borrowed $56 million of stablecoins with $149 million of CRV as collateral.
Currently his health ratings having improved to around 1.67 or higher on these platforms. Yet there is still a risk that were the price of CRV to fall low enough, his positions could be liquidated, potentially leaving these platforms with bad debt. This issue is more serious because it involves such a large portion of the CRV supply.
So far, Egorov has sold at least 55 million CRV to various parties including Tron founder Justin Sun, crypto trader DCFGod and Mechanism Capital co-founder Andrew Kang.
Aave Chan Initiative has also proposed on the Aave governance forum that its treasury should buy up to $2 million of CRV, which it may lock up as veCRV for up to four years.
