DeFi

Curve founder liquidated for $100 million

Published

7 months ago

14 June, 2024

Yesterday, an unfortunate situation occurred for Curve Finance founder Michael Egorov and his entire crypto and DeFi community after large CRV-collateralized positions were liquidated on the Llamalend protocol.

The forced liquidations caused the CRV token to fall by 40%, in addition to creating a “bad debt” typical of some DeFi platforms in certain situations.

But now everything appears to be resolved, with Egorov having paid off almost all of the bad debts and the crypto in the Curve ecosystem having absorbed some of the decline marked yesterday.

Let’s see everything in detail below.

Curve Founder Michael Egorov Suffers Liquidation of Large DeFI Loan: CRV Crypto Collapses 40%

Yesterday afternoon we witnessed a dramatic event in the world of crypto DeFi: Michael Egorov, the famous founder of the Curve Finance project, was liquidated from some large borrowing positions for $100 million in stablecoin, with CRV guarantee.

In total, as “lookonchain” reports, shortly before the incident, the Russian developer had 4 open positions on Inverse, uWuLend, Llamalend and Fraxlend, but only the one on Llamalend felt the weight of the liquidations.

The same Egorov has amassed his X in his liquidated state, and he is present to his team with the aim of restoring order and returning to normality.

The cascade of liquidations immediately triggered a forced collapse in CRV priceswhich reached $0.219 during the day for a maximum variation of around -40%, then recovered slightly in the following hours.

The liquidation of such a large position has started to put pressure on other DeFi protocols, as CRV is used as trade pair and ballast in trading pools across the ecosystem.

One address on Frax Lend, for example, saw $3.3 million in collateral evaporate after CRV prices collapsed, falling below the value of the amount borrowed.

It is interesting to note how Arkham Secret Service had previously highlighted the risks facing the founder of Curve Finance, given that it was at risk of liquidation across five protocols, and that recall mechanisms would be triggered if the value of the collateral fell by 10%.

Additionally, his borrowed position was so large that it represented 90% of the crvUSD tokens present in Llamalend, costing him a 120% annualized APY as the loan funding rate.

As explain by Arkham:

“$50 million of Egorov’s crvUSD loans are on Llamalend, currently costing him around 120% APY. Indeed, there is almost no crvUSD left available for loans against CRV on Llamalend. Three of Egorov’s accounts already account for over 90% of the crvUSD borrowed on the protocol.

Over the past 24 hours, Egorov lost $1.12 million after yesterday’s incident.

The Akham dashboard shows us how its address had reached a PNL of +$600 million at the end of the 2021 bull run, only to return to negative in 2022.

crypto challenge curve

This is not the first time liquidations of this type have occurred on Egorov and its DeFi platform.

In 2023, an exploit of multiple Curve lending pools suddenly caused CRV prices to plummet, putting more than 100 million positions at risk of liquidation.

On this occasion, the billionaire Justin Sun intervened to provide liquidity and prevent the formation of bad debts, by purchasing CRVs at a lower price than before exploitation, thus avoiding a possible systemic collapse.

Paid off $10 million bad debt by selling crypto CRV and other assets

Egorov immediately warned the crypto community on pay off much of the $10 million bad debt that had built uprepaying 93% and committing to repay the remaining portion.

For “bad debt,” or uncollectible debt, in finance, this means credit that is very unlikely to be paid by the debtor. In DeFi this situation arises when, for example, in a lending protocol waterfalls Liquidations occur and few individuals hold significant amounts of tokens deposited as collateral in the pool.

The Curve Finance team and I have been working to resolve the liquidation risk issue that occurred today.

Many of you know that all my loans have been liquidated. The size of my positions was too large for the markets to handle and caused 10 million in bad debts. The only CRV market on…

– Michael Egorov (@newmichwill) June 13, 2024

Egorov highlighted how this will help users not to suffer from this situation: Despite this, the developer has in a certain sense “benefited» of one’s own community and CRV holders by putting the resource as collateral to borrow stablecoin, then selling CRV at a low price to repay the debt. Not really ethical behavior for the founder of a famous crypto protocol in DeFi.

Regardless, Egorov immediately mobilized after the incident to quickly repay part of the amount borrowed from Inverse, UwU Lend, Fraxlend and Curve LlamaLend in order to mitigate the risks of liquidation.

In the early hours of Asia, as shown in the screenshot of transactions from his address, the boss of Curve carried out various exchanges between CRV and USDT And repaid part of the debt with FRAX, DOLA and CRV tokens.

Amid market turbulenceEgorov praised Curve Finance’s soft liquidation mechanism for having passed a resistance test after the hack of the UwuLend protocol, which occurred at the same time as CRV was dumping on the market.

Here’s what he himself said about X:

“The system showed fantastic performance. This gave the liquidators time to prepare the funds and liquidate the hacker’s OTC position. Result: the system has no more funds for hackers, no more bad debts, everything works well.”

We also point out that this news was reported completely inaccurately by several online newspapers. who (extremely unprofessionally) reported a tweet from a fake user posing as the founder of Curve, claiming to have burned 10% of CRV’s supply to prop up the price.

Absolutely false.

Always be careful about the sources you rely on.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

No spam, no lies, only insights. You can unsubscribe at any time.

Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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