292 Million CRV Faces Liquidation Risk At Around $0.4: Report

Key Points:

• Statistics by on-chain data researcher 0xLoki say that 292 million CRVs are close to liquidation risk as the price drops to $0.4.
• The current price of CRV is at $0.62, down 15.8% in the last 24 hours.
• The Curve founder is depositing money into the pool to improve his loan health multiplier.

According to the statistics of crypto researcher 0xLoki, the founder of Curve, Michael Egorov, is currently mortgaging 292 million CRV ($181 million) and lending $110 million in jeopardy after going through a a horrific attack yesterday.

The 4 most essential loans:

1. 190 million CRV mortgaged on aave, $65 million borrowed, and liquidation price of $0.37
2. Mortgage 46 million CRV on FRAXlend, borrow 21 million FRAX, and liquidation price is $0.4
3. Abracadabra deposited 40 million CRV, borrowed $18 million, and liquidation price was $0.39
4. 16 million CRV has been deposited in Inverse, 7 million has been borrowed, and liquidation price is $0.4

Decentralized finance (DeFi) protocols are undergoing a stress test after a critical vulnerability was found in versions of the Vyper programming language, leading to the theft of valuable cryptocurrencies of million dollars on July 30.

Vyper is a contract programming language designed for the Ethereum Virtual Machine (EVM). It is considered one of the most widely used Web3 programming languages, which means that bugs in its three versions can affect several other protocols.

The incident also negatively affected the price of CRV, which dropped more than 15.8% at press time to $0.62. Community members also noted a potential ripple effect on Aave’s protocol, as falling token prices could force Curve founder Michael Egorov to liquidate large loans.

On July 30, Curve Finance announced that the alETH/msETH/pETH stablecoin pool was hacked due to a Vyper recursive critical bug. The attack continued into the early hours of this morning. According to the security agency’s monitoring, the Curve Finance attack caused up to $70 million in damage, of which $16.9 million has been refunded, meaning that there is still $52.4 million at risk of loss.

Debank data shows that Curve founder address deposited 16 million token into Aave V2 more than 6 hours ago or to improve his loan health factor.

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