{"id":583436,"date":"2023-08-01T15:07:49","date_gmt":"2023-08-01T14:07:49","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=583436"},"modified":"2023-08-01T15:07:58","modified_gmt":"2023-08-01T14:07:58","slug":"ethereum-defi-tvl-down-curve-crisis","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/ethereum-defi-tvl-down-curve-crisis\/","title":{"rendered":"Ethereum DeFi TVL Down $3.55B Since Curve Crisis"},"content":{"rendered":"\n<ul><li>Curve founder Michael Egorov has sold over 39 million CRV to investors and entities in over-the-counter deals.<\/li><li>Egorov received $15 million in USDT so far for selling CRV at a discounted price of $0.40, per DeFi analysts LookOnChain.<\/li><li>Sources said the OTC deals include 3-6 month lock-up terms with the buyers like Tron founder Justin Sun and market maker DWF Labs.<\/li><li>Total value locked on Ethereum dipped by a few billion following exploits on factory pools provided by Curve Finance and a slump in CRV price.<\/li><\/ul>\n\n\n\n<p>Total value locked on across Ethereum DeFi protocols dipped by $3.55 billion since Sunday following exploits on Curve Finance factory pools, on-chain analytics provider IntoTheBlock said on Tuesday. <\/p>\n\n\n\n<p>The 8% decline in TVL comes at a time when founder Michael Egorov is selling discounted CRV tokens for USDT in a bid to stave off liquidation of his collateralized loan on Aave, a major DeFi lender.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img width=\"750\" height=\"429\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/08\/Ethereum-DeFi-TVL-by-IntoTheBlock.png\" alt=\"\" class=\"wp-image-583437\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/08\/Ethereum-DeFi-TVL-by-IntoTheBlock.png 750w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/08\/Ethereum-DeFi-TVL-by-IntoTheBlock-300x172.png 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/08\/Ethereum-DeFi-TVL-by-IntoTheBlock-500x286.png 500w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/08\/Ethereum-DeFi-TVL-by-IntoTheBlock-269x154.png 269w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/08\/Ethereum-DeFi-TVL-by-IntoTheBlock-746x427.png 746w\" sizes=\"(max-width: 750px) 100vw, 750px\" title=\"\"><figcaption><strong><a href=\"https:\/\/app.intotheblock.com\/insights\/defi\/charts\" data-type=\"URL\" data-id=\"https:\/\/app.intotheblock.com\/insights\/defi\/charts\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Ethereum DeFi TVL by IntoTheBlock<\/a><\/strong><\/figcaption><\/figure>\n\n\n\n<h2>Tron&#8217;s Sun And Other Tap Curve Discount<\/h2>\n\n\n\n<p>Per DeFi analysts LookOnChain, Curve founder Michael Egorov has sold 39.25 million CRV in exchange for $15.8 million USDT. The transactions were reportedly part of OTC deals with investors like Tron founder Justin Sun, market maker DWF Labs,  crypto trader DCFGod, and DeFi platform Cream Finance. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">More and more institutions and investors bought <a href=\"https:\/\/twitter.com\/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$CRV<\/a> via OTC!<br><br>Machi Big Brother bought 3.75M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$CRV<\/a>.<br>DWF Labs bought 2.5M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$CRV<\/a>.<a href=\"https:\/\/t.co\/MQg382LigF\" rel=\"nofollow\">https:\/\/t.co\/MQg382LigF<\/a> bought 2.5M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$CRV<\/a>.<br>&#8230;<br><br>Michael Egorov has sold a total of 39.25M <a href=\"https:\/\/twitter.com\/search?q=%24CRV&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$CRV<\/a> via OTC and received 15.8M <a href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$USDT<\/a>.<a href=\"https:\/\/t.co\/hQBlW5WG6J\" rel=\"nofollow\">https:\/\/t.co\/hQBlW5WG6J<\/a> <a href=\"https:\/\/t.co\/NMIQ2p05ZL\" rel=\"nofollow\">pic.twitter.com\/NMIQ2p05ZL<\/a><\/p>&mdash; Lookonchain (@lookonchain) <a href=\"https:\/\/twitter.com\/lookonchain\/status\/1686331352483082240?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 1, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>According to reports, Egorov and the buyers agreed on lock-up periods ranging from three to six months. These investors can also sell their CRV should the price rise to $0.80. <\/p>\n\n\n\n<p>Egorov&#8217;s flurry of OTC deals is purportedly a move to cushion his $60 million on Aave collateralized by $175 million in CRV tokens. Liquidation of the founder&#8217;s Aave loan could trigger a domino effect of bad debt across several DeFi lending services, potentially plunging the decentralized lending ecosystem into disarray. <\/p>\n\n\n\n<p>This scenario only plays out should CRV&#8217;s price plunge significantly below $0.3 thus liquidating Egorov&#8217;s massive Aave loan. Concerns regarding the possibility were <a href=\"https:\/\/en.ethereumworldnews.com\/curve-finance-warns-arbitrum-exploit\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/curve-finance-warns-arbitrum-exploit\/\" rel=\"noreferrer noopener\">raised<\/a> after factory exploits on Curve Finance liquidity pools and the ensuing CRV price decline. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Curve founder Michael Egorov has sold over 39 million CRV to investors and entities in over-the-counter deals. Egorov received $15 million in USDT so far for selling CRV at a discounted price of $0.40, per DeFi analysts LookOnChain. Sources said the OTC deals include 3-6 month lock-up terms with the buyers like Tron founder Justin Sun and market maker DWF Labs. Total value locked on Ethereum dipped by a few billion following exploits on factory pools provided by Curve Finance [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":583441,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[108120,2],"tags":[108529,7092,1322,1057,109031],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583436"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=583436"}],"version-history":[{"count":3,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583436\/revisions"}],"predecessor-version":[{"id":583442,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583436\/revisions\/583442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/583441"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=583436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=583436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=583436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}