• News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Videos
  • Blogs
  • Market Cap
  • Shop
What's Hot

Bitcoin ATH Countdown: Record Price Breakout Imminent

2025-05-18

If You’re Allocated Right — The Future Is Bright 💸🚀

2025-05-18

Cryptocurrency Explained: 101 Beginner’s Guide For 2025!!

2025-05-18

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Facebook Twitter Instagram
Crypto Investor News Network
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT

    All Eyes on Art: Upcoming Collections to Watch the Week of February 4

    2025-02-05

    Creator of rabbit AI assistant has hidden NFT past

    2024-05-02

    Ethereum tops daily NFT sales at US$7 mln, ends weakest month of 2024

    2024-05-02

    Top NFT Airdrops and Giveaways for May 2024

    2024-05-02

    Casio Launches NFT Collection Celebrating 50th Anniversary

    2024-05-01
  • Metaverse

    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    2024-12-13

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    2024-10-28

    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

    2024-09-05
  • Analysis

    Crypto Exchange Coinbase Lists New DeFi Altcoin Project Built on Base Blockchain

    2023-12-13

    Ethereum Price Bears Keep Pushing, Why Decline Isn’t Over Yet

    2023-12-13

    Trader Bullish on Cosmos (ATOM), Says One Dogecoin Rival Setting Up for Next Leg Up – Here’s His Outlook

    2023-12-13

    AVAX Price Pumps 50% and Dumps 15%, Why Uptrend Is Still Strong

    2023-12-13

    Top Trader Predicts Parabolic Rally for Solana Competitor – Here’s His Upside Target

    2023-12-13
  • Learn

    A Beginner’s Guide to Crypto

    2025-05-15

    10 Years of Steadfast Support and Compliance

    2025-05-15

    What Is Proof-of-Work (PoW) in Blockchain? A Beginner-Friendly Guide

    2025-05-12

    What is Proof-of-Authority (POA) Consensus in Blockchain?

    2025-05-09

    What Is Proof-of-Stake (PoS)? Guide to Blockchain Consensus for Beginners

    2025-05-09
  • Videos

    Bitcoin ATH Countdown: Record Price Breakout Imminent

    2025-05-18

    If You’re Allocated Right — The Future Is Bright 💸🚀

    2025-05-18

    Cryptocurrency Explained: 101 Beginner’s Guide For 2025!!

    2025-05-18

    Bessent Revealed ALL: Trump’s Crypto Plans & Trade Deals!

    2025-05-17

    Bitcoin, Burgers, Shakes, and America

    2025-05-17
  • Blogs
  • Market Cap
  • Shop
Facebook Twitter Instagram TikTok
Crypto Investor News Network
Home»DeFi»Spooked by Curve Liquidation Threat, DeFi Protocols Shore Up Defenses
DeFi

Spooked by Curve Liquidation Threat, DeFi Protocols Shore Up Defenses

2023-08-01No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

Curve founder Michael Egorov’s borrows of millions against his CRV holdings threaten to destabilize a wide swath of DeFi.

Rather than wait for liquidation chaos, some protocols are taking active measures.

Decentralized finance (DeFi) protocols are angling to protect themselves from the hack of Curve Finance and the threat of potentially catastrophic liquidations.

Curve founder Michael Egorov’s penchant for borrowing tens of millions of dollars in tokens against his CRV holdings has pinned a handful of on-chain lending markets up against the wall. If the price of CRV falls too low and they’re forced to try and liquidate his collateral at a time when buyers are slim, they could sell low and suffer crippling debts – creating a systemic risk for all of DeFi.

Read more: Crisis at DeFi Giant Curve Eases After Justin Sun and Others Step In With Help

The DAO that governs lending platform Abracadabra, from which Egorov had once borrowed $18 million, has decided it’s better to hold CRV through a crisis than to sell into a liquidation cascade. Last night, it approved an emergency measure to change the way it tracks the prices of those tokens “to prevent any inadvertent selling of CRV tokens” that would accumulate bad debt. (DAO contributor Romy told CoinDesk the measure is temporary.)

Another area of focus for teams has been reinforcing the links that lock DeFi protocols together. Last night, a representative for the stablecoin-focused Reserve Protocol, which builds on top of DeFi majors including Lido, Compound and Rocketpool, asked in their respective Discords for help to establish “a more robust incident response strategy” so that its developers can coordinate across teams during crises such as Curve.

See also  Value Locked in Defi Nears $100B Range Again After $11.89B Increase in 35 Days

For Nexus Mutual, an insurance-like service that offers users some protection against losses they suffer from hacks, the weekend assault on Curve will likely lead to a wave of new claims when it opens its portal on Wednesday. The protocol is encouraging its customers to “wait until more information is available” so that it can more accurately assess what they’re owed.

Read more: After the Curve Attack: What’s Next for DeFi?

On Tuesday, after days of Egorov selling assets to pay back lenders, the mood across DeFi was hardly grim but perhaps still skittish. If the markets turned fast he could get liquidated and wreck a retinue of protocols – like it or not.

When, in the Discord server for liquidity protocol Balancer, someone asked if it was safe to use its tool that plugged into Aave (where Egorov did the bulk of his borrowing), a team member advised that it probably was.

“If you do think that’s all likely to go down … it will be Armageddon,” the contributor who goes by Tritium said in the server.

“I really don’t know where would be safu/better to just exit to mega cap base assets and centralized stablecoins (get out of DeFi) all together until you feel better about the situation,” they wrote.

Curve Defenses DeFi Liquidation Protocols Shore Spooked threat
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

IS SAYLOR A THREAT FOR BITCOIN???

2025-03-21

Bitcoin and Crypto Under Threat By The Worlds Largest Market Maker

2025-02-24

The Stablecoin Threat To Bitcoin (Forks)

2025-02-12

Is Tether A Threat To Bitcoin?

2025-02-11
Add A Comment

Leave A Reply Cancel Reply

Top Posts
Regulation

SEC advances decision process on Franklin Templeton’s Bitcoin ETF application

2023-11-29

In a surprising turn of events, the U.S. SEC has advanced its decision-making process regarding…

Regulation

Hong Kong Financial Regulator Forms New Partnership With Police To Monitor Crypto Exchanges

2023-10-07

The supervisory body regulating the securities and futures market in Hong Kong teams up with…

DeFi

GammaSwap live on Arbitrum mainnet after 9 months of testing

2023-09-21

GammaSwap recently announced going live on the Arbitrum mainnet. The platform underwent over nine months…

Subscribe to Updates

Get the latest news and Update from CINN about Crypto, Metaverse and NFT.

Editors Picks

Bitcoin ATH Countdown: Record Price Breakout Imminent

2025-05-18

If You’re Allocated Right — The Future Is Bright 💸🚀

2025-05-18

Cryptocurrency Explained: 101 Beginner’s Guide For 2025!!

2025-05-18

Creator of over 100 memecoins says rug pulls are the ‘easiest way to make money’

2025-05-18
Crypto Investor News Network
Facebook Twitter Instagram TikTok
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Disclouser
© 2025 - All rights are reserved.

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 104,462.99
ethereum
Ethereum (ETH) $ 2,482.77
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.34
bnb
BNB (BNB) $ 642.27
solana
Solana (SOL) $ 165.97
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.21925
cardano
Cardano (ADA) $ 0.72848
tron
TRON (TRX) $ 0.272757
bitcoin
Bitcoin (BTC) $ 104,462.99
ethereum
Ethereum (ETH) $ 2,482.77
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.34
bnb
BNB (BNB) $ 642.27
solana
Solana (SOL) $ 165.97
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.21925
cardano
Cardano (ADA) $ 0.72848
tron
TRON (TRX) $ 0.272757