Alpha Zone
My Reading List
Log in
DeFiGaming & MetaverseInfrastructureMarketsNFTs
On-Chain Insights: Curve and Maker Update
Osgur Murphy O Kane
Key Takeaways
5 min read
  • Michael Egorov is selling Curve OTC en-masse in order to repay loans. The founder borrowed nearly $100m and has large positions opened from Aave, Abracadabra, Frax, and Inverse. The Frax loan is most concerning at present given its high (85%) and potentially increasing APR. The redistribution of CRV could also be considered bullish.
  • The FUD has somewhat reduced over the last 24H, but it is important to keep a close eye on the situation. A collapse in Curve would have severe repercussions for the industry, given its status as a key pegged asset infrastructure.
  • Maker’s implementation of a new buyback program has helped trigger a run in price, as well as reduced reliance on USDC and higher weighting of revenue-generating RWA. The buybacks should make the protocol more robust (increasing MKR liquidity) and decrease volatility for the token.


Curve Finance founder Michael Egorov took out a $100m loan on CRV across multiple lending platforms, most notably Aave (~$65m). Some of the proceeds of this were apparently used to purchase two mansions in a flamboyant showcase of leveraging DeFi in the real world. However, things turned sour when Curve was hacked this week for around $70m in various tokens. There has been uncertainty in the market if CRV will remain above the liquidation threshold for the loans. CRV is currently $0.58.

His current positions are:

  • $60m from Aave...