The post Liquidated Founder Promises To Develop Curve Amid Accusations Of Elaborate Cash-Out appeared on BitcoinEthereumNews.com.

Curve’s founder suffered an enormous CRV liquidation after borrowing $95.7 million worth of stablecoins against the asset. Michael Egorov, the founder of Curve Finance, claims to be more committed to building Curve than ever despite having an enormous stash of CRV liquidated in recent days. On June 13, Egorov revealed he is now predominantly exposed to CRV through vote-escrow (ve) CRV tokens, motivating him to work towards the project’s development through game theory incentives. The comments come after Egorov lost more than 100 million regular CRV tokens to margin calls “In case anyone is wondering, I am committed to building Curve more than ever, thanks to game-theoretical implications of veTokenomics (mostly have veCRV now),” Egorov tweeted. Curve’s founder added that he plans to work towards ensuring that the protocol’s lending and borrowing products are “the safest in the industry,” educating arbitrage traders on how to execute orderly liquidations, and designing mechanisms incentivizing users to deposit crvUSD — Curve’s native stablecoin — into the protocol. VE tokenomics VE tokens are non-transferable assets issued in exchange for locking up a project’s governance power. VE-tokenholders receive governance power proportional to the time duration that their tokens are locked up for, allowing them to vote on how new token emissions are allocated. This mechanism famously gave rise to the “Curve Wars” in 2021, where DeFi protocols competed to allocate CRV rewards to Curve liquidity pools for their respective assets, in turn attracting liquidity from liquidity providers (LPs). Liquidated, but not rekt? On June 12, Arkham Intelligence, an on-chain intelligence platform, flagged that Egorov would soon face liquidation should the price of CRV fall another 10% after posting heavy losses over the preceding week. Arkham said Egorov had previously taken out $95.7 million worth of stablecoin loans backed by $141 million worth of CRV. On…

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Filed under: News - @ June 14, 2024 8:16 am