{"id":22906,"date":"2024-06-15T10:30:23","date_gmt":"2024-06-15T07:30:23","guid":{"rendered":"https:\/\/coinengineer.io\/?p=22906"},"modified":"2024-06-15T09:31:03","modified_gmt":"2024-06-15T06:31:03","slug":"curve-founder-michael-egorov-repay-10-million-debt","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/curve-founder-michael-egorov-repay-10-million-debt\/","title":{"rendered":"Curve Founder Michael Egorov Repays $10 Million Debt After Hack Attempt"},"content":{"rendered":"<p><strong>Michael Egorov, the founder of Curve,<\/strong> said that he has settled the $10 million worth of the bad debt that was incurred as a result of the June 13th\u2019s hacking incident triggered by the soft liquidations. <em>\u201dThe size of my positions was too large for markets to handle and caused $10M of bad debt\u201d Egorov said social media after the incident, he also added that he has already paid 93% of the total debt.<\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/curve-founder-michael-egorov-repay-10-million-debt\/#Egorovs_Quick_Repayment_and_Debt_Explanation\" title=\"Egorov\u2019s Quick Repayment and Debt Explanation\">Egorov\u2019s Quick Repayment and Debt Explanation<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/curve-founder-michael-egorov-repay-10-million-debt\/#Impact_of_the_Hack_on_Curve_Token_and_Proposed_Remedies\" title=\"Impact of the Hack on Curve Token and Proposed Remedies\">Impact of the Hack on Curve Token and Proposed Remedies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/curve-founder-michael-egorov-repay-10-million-debt\/#Performance_of_Curves_Soft_Liquidation_Mechanism\" title=\"Performance of Curve&#8217;s Soft Liquidation Mechanism\">Performance of Curve&#8217;s Soft Liquidation Mechanism<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Egorovs_Quick_Repayment_and_Debt_Explanation\"><\/span>Egorov\u2019s Quick Repayment and Debt Explanation<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>A brief and temporary increase in the cost of borrowing resulted in soft liquidations of Egorov\u2019s positions after the June 13 hacking attempt. Egorov\u2019s stablecoin debt was at $95 million and the annualized cost of rolling over his positions was $60 million hence he was looking at liquidation of <strong>$140 million<\/strong> at the height of the crisis. <strong>Egorov<\/strong> proved this dedication to stabilizing the platform by replenishing the entire sum as soon as possible despite the difficulties.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact_of_the_Hack_on_Curve_Token_and_Proposed_Remedies\"><\/span>Impact of the Hack on Curve Token and Proposed Remedies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The episode had a considerable impact on the<strong> token of Curve, CRV,<\/strong> and the token price dropped by 28%. <strong>Egorov<\/strong> proposed to burn out 10 percent of the total $37 million value of CRV tokens to support its price. He also offered higher APY to those who will vote for the measure as their reward as a voter.<\/p>\n<p><a href=\"https:\/\/coinengineer.net\/blog\/binance-will-support-fet-ocean-and-agix-token-merger\/\"><em><span style=\"font-weight: 400;\">This Might Interest You:\u00a0<\/span>Binance Will Support FET, OCEAN and AGIX Token Merger<\/em><\/a><\/p>\n<p>The present issue with <strong>Curve<\/strong> has brought back the concerns regarding the risks that Egorov\u2019s credit exposure to the stability of the platform engenders. A study by Delphi Digital in 2023 had indicated that Egorov\u2019s $100 million loans in Defi might lead to the collapse of Defi. Nevertheless, the events that occurred with Egorov and the reactions of the community are aimed at minimizing these risks and enhancing the platform\u2019s robustness.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Performance_of_Curves_Soft_Liquidation_Mechanism\"><\/span>Performance of Curve&#8217;s Soft Liquidation Mechanism<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even though the <strong>Curve<\/strong> platform was highly stressed, the soft liquidation mechanism of LLAMMA functioned as intended. <em>\u201dThe system worked great. This gave the liquidators enough time to execute OTC-liquidate the hacker\u2019s position and get the funds in place.\u201d The system itself is almost without defaults, and there are no funds left for the hacker, everything is as it should be<\/em> Egorov noted.<\/p>\n<p>The gentle liquidation technique liquidates a borrower in a slow and painless manner by reducing the borrower\u2019s status as a debtor. The system liquidates the borrower and closes out the loan, if her health value equals zero percent. The effectiveness of this mechanism determines the management of the problem and the prevention of more platform destabilizing action.<\/p>\n<p><a href=\"https:\/\/t.me\/coinengineernews\"><em><span style=\"font-weight: 400;\">Click here to get the latest news from Coin Engineer!\u00a0<\/span><\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michael Egorov, the founder of Curve, said that he has settled the $10 million worth of the bad debt that was incurred as a result of the June 13th\u2019s hacking incident triggered by the soft liquidations. \u201dThe size of my positions was too large for markets to handle and caused $10M of bad debt\u201d Egorov<\/p>\n","protected":false},"author":6,"featured_media":22907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,1],"tags":[6853,6854],"class_list":["post-22906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-genel","tag-curve-crv","tag-michael-egorov"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - 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