The founder of crypto lending protocol Curve, Michael Egorov, was liquidated for $140 million Thursday morning after the CRV token dropped as low as 30% Thursday morning.
The platform allows users to swap like-assets, such as dollar-pegged stablecoins or various liquid staking tokens, for one another. Maximized to reduce slippage for large trades, Curve is something of an arbitrage trader’s paradise.
Even micro-differences between stablecoins can mean massive profits for whales trading in large volumes.
As of last night, Egorov was using $141 million worth of CRV tokens to secure a $95.7 million stablecoin loan.
"If the price of CRV drops by ~10%," wrote blockchain analytics platform Akrham on Twitter last night,
"these positions may begin to be liquidated."
Since then the CRV price has sunk as low as $0.23—setting a new all-time low for the token—and has since
rebounded slightly to $0.27 at the time of writing.
